Topic 1.5 Flashcards
What are stakeholders
People that take an interest and may be affected by the business
Examples of stakeholders
Owners
Employees
Local community
Customers
What do stakeholders influence
Business decisions to varying degrees
What is E-commerce
Using the internet to buy and sell products
How has technology made it easier to pay for products
Online payments
Chip + Pin
Contactless
Examples of how firms can communicate digitally
Websites
Email
Mobile Apps
Live Chats
Video Calls
How can tech change a business’ costs and sales
Can reduce costs by replacing people
Automation
Bigger markets
Can costs more to upgrade
How can technology change a business’ marketing
May have to change their pricing strategies
May have to change promotion
This is because customers have more choice
What is the National Minimum Wage
Workers aged 22 and under but of school-leaving age
What is the National Living Wage
Workers aged 23 and over
Pros and cons of NLW and NMW
Pros:
Increased motivation
Cons:
Expensive
Can damage reputation if not followed
How can businesses make the workplace safe
Risk assessments
Health and safety training
However it is expensive but worth it
What is the Consumer Rights Act of 2015
States that the goods should:
Be fit for purpose
Match its description
Be of satisfactory quality
How can unemployment help some businesses
They can pay lower wages
How can unemployment be a problem for some businesses
Less disposable income therefore less sales
What is tax
Money that goes to the government
What does tax do to business growth
Higher tax means slower growth
Lower tax means faster growth
What in inflation
The general increase in prices of goods and services - tracked through household items
Effects that inflation can have on a business
Consumer spending
Cost of Labour
Global Competition - sales may decrease in high inflation
What happens when consumer incomes fall
Businesses selling luxury items may see a decrease in sales whilst stores selling things at discount prices may increase
What do low interest rates lead to
Increased spending as borrowing is increased
What do high interest rates lead to
Decreased spending as borrowing is decreased and saving is increased
What is an exchange rate
The price at which one currency can be traded for another
What is a weak pound
Where the value of the pound decreases
It is good for exporters
Bad for importers
What is a strong pound
Where the value of the pound increases
Bad for exporters
Good for importers
