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GCSE Business > Topic 2: External Influences > Flashcards

Topic 2: External Influences Flashcards

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1
Q

What is CAD?

A

Computer Aided Design

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2
Q

What is CAM?

A

Computer aided manufacturing

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3
Q

What is automation?

A

The use of technology and robotics to automate processes and functions within an organisation

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4
Q

What is an EPOS?

A

Electronic point of sale - a modern tile system to help a business run better and more efficiently

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5
Q

What is teleworking?

A

When employees work remotely whilst communicating with their colleagues through telephone, email or video conference

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6
Q

What is product innovation?

A

The creation and introduction of a product or service that is new to the market or a different iteration of an existing product

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7
Q

What is e-commerce?

A

Buying or selling goods or services electronically

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8
Q

What is legislation?

A

A set of rules that govern society

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9
Q

What are the 3 areas of business legislation?

A
  1. Consumer protection
  2. Employment
  3. Health and safety
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10
Q

What are the 6 pieces of employment legislation?

A
  1. Minimum wage
  2. Equality act
  3. Maternity and paternity leave
  4. Discrimination
  5. Disability
  6. Age
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11
Q

What does the minimum wage legislation state? How does it impact a business?

A

States all businesses must pay their staff a minimum hourly rate that can cover the needs of living - it changes depending on age
IMPACT: costs increase as age of staff increases

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12
Q

What does the equality act state? How does it impact a business?

A

All staff must be paid the same if they do the same job - not depending on gender etc.
IMPACT: businesses must be sure they pay staff the same

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13
Q

What does the maternity and paternity leave legislation state? How does it impact a business?

A

Pregnant women get 52 weeks off and get paid for first 20 weeks
Fathers get 2 weeks off - fully paid
Both must be able to return to the same position after the leave
IMPACT: business may have to find temporary replacements

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14
Q

What does the discrimination legislation state? How does it impact a business?

A

There are 9 protected characters and people cannot be treated differently based on them
IMPACT: businesses must be fair and transparent

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15
Q

What are the 9 protected characteristics?

A
  1. Age
  2. Gender
  3. Disability
  4. Marital status
  5. Pregnancy
  6. Race
  7. Religion
  8. Sex
  9. Sexual orientation
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16
Q

What does the disability legislation state? How does it impact a business?

A

Businesses cannot discriminate to disabled people
IMPACT: the business must be accessible to disabled people

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17
Q

What does the age legislation state? How does it impact a business?

A

No preference must be given to candidates based on age unless there’s a specific reason to do so e.g. having drivers license
IMPACT: they mustn’t discriminate

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18
Q

What are the 2 pieces of consumer legislation?

A
  1. Sales of goods act
  2. Trade descriptions
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19
Q

What does the sales of goods act state? How does it impact a business?

A

Products must be at a standard quality level, fit for purpose and as described
IMPACT: businesses must ensure quality is high - costly

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20
Q

What does the trade descriptions legislation state? How does it impact a business?

A

Business must accurately describe goods and services and they should match their descriptions including size and quantity
IMPACT: they have to be sure every product is as described or customers may return it

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21
Q

What is the piece of health and safety legislation?

A

Health and safety at work act

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22
Q

What does the health and safety at work act state? How does it impact a business?

A

Working conditions for employees and customers must be safe
IMPACT: they must have regular inspections to ensure these conditions are safe

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23
Q

How does unemployment rate impact consumers?

A

Prices and VAT may be higher

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24
Q

How does unemployment rate impact businesses?

A

Less people have disposable cash to spend on a businesses goods and services

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25
Q

What are the 4 stages of the economic cycle?

A
  1. Boom - businesses are making loads of money, demand is at its peak, people have a lot of money
  2. Recession - businesses are slowly making less money, demand is decreasing, people have less money
  3. Slump - business are making little money, demand is at its lowest, people have barley any disposable cash
  4. Recovery - businesses are beginning to make more money, demand is slowly increasing, people begin to have more money to spend on goods
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26
Q

How does inflation rate impact consumers?

A

They will have to pay more for goods and services

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27
Q

How does inflation rate impact businesses?

A

They will have to spend more on stock and inventory and will make less of a profit

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28
Q

What is consumer spending?

A

The value of goods and services bought by consumers

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29
Q

How is consumer spending measured?

A

Through GDP

30
Q

What is an interest rate?

A

The cost of borrowing money and reward for saving

31
Q

If things get too expensive what will the government do to the interest rate? Why?

A

Government will increase interest rates - people will thus stop borrowing money from bank so demand will fall and prices return to normal

32
Q

If things get too cheap what will the government do to the interest rate? Why?

A

Government will decrease interest rates

33
Q

Who is the MPC? What do they do?

A

Monetary Police Committee - work for the Bank of England, they meet every 3 months and set interest rates

34
Q

What should interest rates be?

A

Around 2%

35
Q

How to calculate annual interest payments?

A

Annual interest payments = loan x interest rate/100

36
Q

What are ethics?

A

The moral standards by which business behaviour is judged - whether business activities are morally right or wrong

37
Q

What are examples of ethical behaviour in businesses?

A

Equal pay
Fair trade and charity
Recycling and limiting pollution
Sustainability

38
Q

What are examples of unethical behaviour in businesses?

A

Child labour and exploitation
Animal testing
Production of pollution and waste
Discrimination

39
Q

What is a trade off? Example?

A

When a business has more of one thing which potentially results in having less of another
E.g. if a business has cheap prices, they may be exploiting staff and their reputation may worsen

40
Q

What is the environment?

A

The natural world within which we live, it’s the landscape and natural features

41
Q

What is environmental sustainability?

A

How a business uses its resources and assesses if it’s renewing these resources fast enough to ensure that stocks don’t deplete

42
Q

What are sustainable methods of production?

A

Methods of production that can continue in the long term without damaging the environment for future generations

43
Q

What are the 4 main environmental considerations for businesses?

A
  1. Traffic congestion
  2. Recycling
  3. Disposal of waste
  4. Noise and air pollution
44
Q

What can customers do to reduce traffic congestion?

A

Use alternative methods of transport e.g. car share or public transport

45
Q

What can businesses do to reduce traffic congestion?

A

Timings of deliveries to and from stores and the frequencies of them
Use efficient delivery services
Arrange car shares for employees

46
Q

What can customers do to increase recycling?

A

Recycling product after use
Buying refillable products
Reusing carrier bags

47
Q

What can businesses do to increase recycling?

A

Make recyclable packaging
Make products out of recycled goods

48
Q

What can customers do to reduce disposal of waste?

A

They can reduce waste e.g. not buying more than what they need
Safe disposal of waste

49
Q

What can businesses do to reduce disposal of waste?

A

Finding alternative uses of waste
Safe disposal of waste
Lean production - reducing waste in the first place

50
Q

What can customers do to reduce noise and air pollution?

A

Reduce carbon footprint by buying from local businesses
Use low emission cars

51
Q

What can businesses do to reduce noise and air pollution?

A

Reduce carbon emissions by sourcing supplies locally
Making products in factories that don’t use as much fossil fuels

52
Q

Advantages and disadvantages to technological advancements in business?

A

Advantages: make processes faster, reduce costs in the long term
Disadvantages: can be very expensive, staff with high skill must be hired

53
Q

What are the 4 main ways businesses can communicate digitally with stakeholders?

A
  1. Social media
  2. Websites
  3. Live chats
  4. Email
54
Q

Advantages and disadvantages to advancements in e commerce?

A

Advantages: cheaper, reaches wider markets
Disadvantages: requires skilled staff

55
Q

Advantages to acting ethically?

A

May increase their prices
It can motivate people to buy from the companies
Can have a positive effect on shareholders

56
Q

Disadvantages to acting ethically?

A

Can be costly for a firm
May find it hard to find a supplier that’s ethical
May impact reputation if the supplier turns out to be unethical

57
Q

What is competition?

A

The rivalry between businesses who operate in the same market, they sell a similar product to a similar market

58
Q

What are the 3 types of competitive markets?

A
  1. Monopoly
  2. Oligopoly
  3. Perfect competition
59
Q

What is the monopoly type of competitive market?

A

A market structure where a single seller or producer assumes a dominant position in a industry sector
Own 25% of the market

60
Q

What is the oligopoly type of competitive market?

A

A market structure where there are a small number of large firms dominating the market

61
Q

What is the perfect competition type of competitive market?

A

Market structure when all companies in an industry sell identical products - it is fair and has no dominator

62
Q

What market structures have high barriers to enter?

A
  1. Monopoly
  2. Oligopoly
63
Q

What market structure has low barriers to enter?

A

Perfect competition

64
Q

What market structure can charge high prices?

A

Monopoly

65
Q

How do businesses compete within competitive markets?

A

Pricing strategies
Quality and good customer service
USPs
Innovative ideas

66
Q

What risks do businesses face in competitive markets?

A

Loss of customers
May be forced to charge lower prices
There may be ‘copycat’ products
Other bigger brands may dominate the market

67
Q

What are the advantages when there is limited competition?

A

Charging higher prices
Can create exclusivity
Less advertising may be done

68
Q

What is globalisation?

A

Companies operating internationally or on a global scale
A process in which economies have become increasingly integrated and interdependent - it’s a dynamic and not an end state

69
Q

What are the positives of globalisation?

A

Product life cycles may last longer - it can be an extension strategy
Can expand the audience and customers for the business as they have a greater access to foreign markets
Can increase brand recognition and sales

70
Q

What are the negatives of globalisation?

A

Can be costly and waste time - especially since there is a risk of failure
UK may struggle to compete with competitors - things may not be made as cheaply by the UK - due to minimum wage being higher
UK currently struggles to trade and access markets - due to Brexit

GCSE Business (6 decks)

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