T1.5 - Understanding external influences on business Flashcards
Who are business stakeholders? x7
-owners
-employees
-suppliers
-local community
-customers
-government
-pressure groups
What is a stakeholder?
anyone affected by a business
Types of technology used by businesses? x4
-e-commerce
-social media
-digital communication
-payment systems
Types of payment systems? x3
-online payment
-card and pin
-contactless
Ways firms communicate digitally? x5
-websites
-email
-mobile apps
-live chats
-video calls
What does new technology affect? x3
-costs
-sales
-marketing mix
principles of employment law? x4
-recruitment
-pay
-discrimination
-health and safety
What age is national minimum wage for?
aged 22 and under
What age is national living wage for?
aged 23 and over
laws about recruitment? x2
-check workers legal right to work
-recruitment procedures must not discriminate
What do firms need to do for health and safety?
risk assessment
principles of consumer law? x2
-quality
-consumer rights
Advantage of unemployment for some firms?
-lower wages in areas of ihgh unempolyment
disadvantage of unemployment for some firms? x2
-customers have less disposable income
-workers lose skill when unemployed
affects of raising business taxes? x3
-business may become more environmentally friendly
-cutting costs
-relocate business abroad
affects of lowering business tax? x1
-businesses from abroad set up in Uk
Impact of inflation on a business? x3
-consumer spending
-cost of labour
-global competition
Impact of inflation on consumer spending? x2
-consumer spending increases short term
-consumer spending decreases if wages dont go up
Impact of inflation on cost of labour? x1
-employees pressure for higher wage
Impact of inflation on global competition? x2
-high inflation means exports more expensive
-low inflation means export cheaper
What happens when income rises at slow rate than inflation?
-people spend greater proportion of money on everyday essentials
Who benefits when income rises at slow rate than inflation?
business selling goods at discounted prices
What happens when income rises at faster rate than inflation?
-people spend a smaller proportion of money on everyday essentials
Who has a negative impact on income rising at faster rate than inflation?
businesses selling goods at discounted prices
What happens when interest rates are low? x2
-firms and consumers borrow more and save less
-demand for product goes up
What happens when interest rates are high? x3
-firms and consumers borrow less and save more
-demand for product goes down
-firms may not be able to pay employers
What happens if if value of currency drops? x2
-export become less expensive
-import becomes more expensive
What happens if if value of currency goes up? x2
-exports become more expensive
-imports become less expensive
