test 2 Flashcards
Who are the stakeholders in a business (8)
Customers
Owners
Suppliers
Employees
Manager
Government
Banks
Local community
What’s an employees interest (3)
- High rate of pay/ bonuses
- Good working conditions
- Job security
What’s a customers interest (3)
- High quality product/ service
- Affordable prices
- Good after sales service
What’s an owners interest (3)
- High profits
- High return on their investments e.g. dividends
- Growth of the business
What’s an Local Community interest (2)
- Creations of jobs
- For the business to act in a socially responsible manner
What’s an suppliers interest (2)
- Regular orders
- Prompt payment
What’s an government interest (2)
- Creation of jobs
- Payment of taxes
What’s a banks interest (1)
- Ability to meet loan/ mortgage repayments
What’s a suppliers influence on a business (3)
- Period of credit offered (if any)
- Reliability in terms of delivery and the quality and quantity of goods sold
- Prices charged
What’s an owners influence on a business (3)
- Invest more money in the business
- Withdraw investment e.g. sell shares
- Influence decisions at the AGM (Annual General Meetings)
What’s a governments influence on a business (3)
- Increase the rate of tax
- Introduce changes to legislation
- grant planning permission
What’s a customers influence on a business (2)
- Choose to shop somewhere else
- provide feedback- positive and negative reviews
What’s an employees influence on a business (2)
- Standard of work produced
- Can take industrials actions e.g. strikes
What’s a local Community’s influence on a business (2)
- Can complain to the local community
- Can protest e.g. writing to the local press
What’s a banks influence on a business (2)
- Grants or refuse loans
- Interest rate changed on loans
What’s a managers influence on a business (1)
- Quality of the decisions they make
What are the internal factors (3)
- Availability of Finance
- Human Resources
- Technology
What is the External factors
Political
Economic
Social
Technological
Environmental
Competitive
What are political factors (3)
Decisions made by the Government:
- Changes to legislation
- Changes to tax rates
- Alter levels of spending on public service
What are economic factors (3)
The state of the economy:
- Economic growth/recession
- Currency exchange rates
- Changes to interest rates (costs of borrowing)
What are social factors (3)
- Changes in the populations (demographics)
- Changes in the society e.g. lifestyle changes
- Changes in tastes/fashions
What are technological factors (1)
- Developments in IT, social media and computerised machinery in production
What are environmental factors (2)
- Weather and natural disasters
- Pressure to be environmentally- friendly e.g. recycling
What are competitive factors (1)
- Behaviour of competitions
