Section 2 Influences On Business Flashcards
What is the national minimum wage
Minimum amount employers have to pay their staff this applies for workers aged 20 and under
What is the national living wage
Workers aged 21 and over have to be paid the national living wage which is slightly more than the national minimum wage.
What is the equality act
This means that businesses can’t discriminate when doing the recruitment procedures for example gender,race or disability.
What is the health and safety act
Requires all staff to have health and safety training to ensure a good workplace and comfortability for example first aid training.Health and safety equipment must be provided e.g hard hats on a building site.
What is the consumer act for products ( 3 factors)
The product should be fit for purpose-The product has to do the job it was designed to do
The product should match the description-illegal to give false description includes size and quantity and it’s illegal to claim that it’s been approved by someone.
The product should be of satisfactory quality-Product should be well made and shouldn’t cause any problems for the buyer.
How can consumer laws affect businesses
If a business breaks consumer law it’s faced with the cost and inconvenience of having to replace an item.The case could even end up in court if the customer is unhappy and it can also harm the businesses reputation which could lead to a reduction in sales.
How has technology changed the way businesses operate (2 advantages)
Developments in information and communication have made processes faster as computers can do jobs quicker and could lead to reduced costs in the long term.
How has technology changed the way businesses operate (2 disadvantages)
-May have to train staff to use new computer systems
-adapting to new technology can be very expensive
How can firms communicate with stakeholders digitally (3 examples)
Email
Video calls
Social media
What are 2 advantages to a business working ethically
-Could gain new customers and make profit due to new views on how important ethics are
-Treating staff ethically can mean workers are more motivated which would result in more productivity.
What are the 2 disadvantages to a business acting ethically
-May mean you have to pay more for certain materials and suppliers as it’s more expensive.
-The business may put it’s prices up because of this.
What is E-commerce
Buying and selling goods using the internet
Advantages of e-commerce
-Has allowed businesses to access a wider market.
-can experience sales increase and become well known
Disadvantages of E-commerce
-Costs increase due to having to train staff to use computers
-Personal contact with customers is lost
Benefits of digital technology
Decreases costs
Quality improves
Increased communication options
Helps marketing and increases markets
Allows remote working
Easier to recruit and retain employees
What is ethics
Where businesses make decisions on what is morally right rather than what is profitable.
Benefits of ethics
-improved brand and could gain recognition
- Increased staff motivation and retention.
-Easier to attract and recruit staff.
What is the economic climate
General situation in a country affecting the wellbeing of individuals,firms and the government in areas such as prices and employment.
What are the advantages of interest rates
Decreasing interest rates will encourage businesses to invest and consumers to spend.
What are the disadvantages of interest rates
Low interest rates will discourage saving as the rewards are limited
Disadvantages of unemployment
-Fewer workers will be available.
-wage increases are likely as less workers are available.
Advantages of unemployment from business perspective.
-Workers will be more motivated as they have more job security.
-Incomes will be higher so spending goods and services will increase as they don’t have to pay wages.
What is globalistation
Movement of goods,services,people,money,information and technology enabling businesses to sell their products anywhere in the world.
Benefits of globalisation
Increased markets,increases efficiency, transfer of knowledge
