THEME 1: 1.5 Flashcards
What does stakeholder mean?
Anyone who is affected by the business.
How might a pressure group influence a businesses activities?
Create bad publicity about the business so the business may change certain ways they operate to please them.
What are 4 possible stakeholders of a business?
Owners, customers, employees, suppliers and local community
Why might a firms costs increase if it starts using e-commerce.
Build websites, employ IT specialists and develop distribution systems to get products to customers.
Other than social media what are 3 ways a business can communicate digitally with stakeholders.
Email, mobile apps, live chats, video chats.
Why is social media a good method of communication for a business?
Different types of information, updated regularly and can be seen by lots of people at once.
Why can setting up faster paying systems be beneficial for a business.
Easier and more convenient for customers so more likely to buy from a firm.
Explain one way in which new technology might change a firms marketing mix.
E-commerce means firms can have their products bought from all over the world.
Explain how the law has some control over what businesses pay their workers.
National minimum wage is the minimum amount of money a company has to pay it’s workers.
How might a business be affected if it discriminates against its workers?
Pay compensation, bad reputation
What are 2 consequences of businesses failing to follow health and safety laws?
Prosecuted, fined, closed down, pay compensation and bad publicity
What are 3 criteria goods should meet to follow consumer law?
Product is fit for its purpose, product matches description and it should be of satisfactory quality.
Explain why breaking consumer law can be expensive for a business.
Pay customer if they lose the case and damages their reputation
State 2 negative impacts that high levels of unemployment can have for business.
Less disposable income people have (less to spend) so they won’t buy as much.
Firms may also hire people that have been unemployed for a while that may have lost their skills.
Give one type of tax a business has to pay.
Tax on properties they own.
What does inflation mean?
Increase in the prices of goods over time.
What happens to consumer spending when interest rates fall?
Borrowing money becomes cheaper.
Explain why a weak pound can benefit British economies that export goods
