Topic 18 - Topic 22 Flashcards
For-profit and not-for-profit organisations play an important role in society. These impacts are both positive and negative.
Economic Impacts can be:
Positive:
• Organisations that create employment pay wages to their employee, many of whom live locally. These employees will in turn spend that income in local shops.
• The Income tax (PAYE) that employees pay will be used by the government and local authorities to provide public services in the local community.
• New housing is built to meet the demands of people who want to live in the area and be close to their workplace.
Negative:
• The price of buying or renting houses might rise due to the extra demand, so people will have less discretionary income to spend.
• A large organisation opening in an area, may force other, smaller local businesses o close down, as they can no longer compete with the larger organisation.
• Local businesses such as restaurants and shops may increase their prices to cash in on the money available in the area.
Social impacts refer to ways in which an organisation affects the health and wellbeing of people who work for the organisation or have dealings with it or who live in the local community in which the organisation exists.
Social impacts can be:
Positive:
• Employees in the new organisation will have an increased feeling of wellbeing and self-fulfilment.
• New and improved facilities, such as cinemas, restaurants, shops etc may open as a result of the regeneration of the area.
• Young people are happy to stay in an area that provides employment.
Negative:
• There may be a loss of a sense of community, especially is small, local businesses are forced to close.
• If a lot of new people move into an area, but are not supported by the necessary infrastructure, like roads, shops, and other local services, then pressure is added to existing services.
• If the business or organisation closes, it can devastate the local area.
Environmental impacts refer to how the local and wider community will be affected by the organisation’s level of commitment to sustainable development and their environmental goals and targets.
Environmental Impacts can be:
- Positive:
- The local community should not experience air or water pollution as a result of the organisation’s activities.
- Many organisations encourage their staff to walk or cycle to work or to use public transport.
- Organisations can use clean technologies, such as renewable energy, electric transport etc in their business, which will increase their energy efficiency, reduce their use of scarce natural resources and reduce harmful emissions and waste production.
- Negative:
- Some organisations may pollute the environment (air/noise/waste)
- Large organisations may put pressure on the water and sewerage systems in the community, which may cause problems for local residents.
- Some organisations use a large amount of fossil fuels, which is harmful to the environment.
What does the term digital technologies refer to?
Digital technology refers to all the types of technology that are computer based and that process and use digital information (numbers) to develop a solution in order to make something work.
List the different types of technology in businesses
- Communication
- Sales and Marketing
- Accounting
- Design and production
- Market research and advertising
- Administration
Sales and Marketing uses digital technology to market, promote and sell their products and services to a worldwide market. Nearly all organisations have a website, which they use to advertise and sell their goods and services.
The Accounting and financial function in an organisation is now almost completely carried out electronically. This includes online payments, paying staff wages and preparing budgets.
Market research an advertising uses technology in order to gather information about consumers, using direct marketing to send emails and text messages to inform consumers about new products/services, and using social network platforms and the business’s website to attract customers.
Computer-aided design (CAD refers to the use of computers and special software to create plans for the design of building projects.
List the rewards of technology in businesses
- Technology increases staff efficiency because it reduces the amount of time they need to complete certain tasks.
- Job satisfaction levels among staff improve, as technology helps to motivate workers and increases their job enjoyment.
- Confidential information can be protected using digital tools, such as encryption, password protection and firewalls.
- The internet allows organisations to sell their products and services to the global market.
- Technology lowers business costs and increases profits as there are reduced labour costs, reduced marketing costs and reduced postage and stationery costs.
What is marketing?
Marketing is defined as everything that is involved in getting goods or services from the producer to the consumer at a profit.
What is a market?
A market is the place where goods and services are bought and sold.
What is a target market?
A Target Market is a group of people who are likely to want to buy a particular product or service.
What is a niche market?
A niche market is a market that targets a specific and often small group of people.
What is digital marketing?
Digital marketing is the marketing of products and services using various digital technologies, such as the internet and smartphones.
What is market segmentation?
Market segmentation is defined as the process of dividing the total consumer market into smaller groups, called segments, based on a characteristic they share.
What is desk research?
Desk research is defined as information that is collected about a market by looking up reports, newspaper articles and other documents that are available on the internet, in libraries or from government agencies.
