understanding external influences on the business Flashcards
what is a stakeholder
any person, group of people or other organisation that has an interest in the activities of a business.
what is a manager, are they internal or external stakeholders
internal, staff who are responsible for implementing the decisions made by the owners and overseeing the work that is required.
who are employees, are they internal or external stakeholders
internal, staff who carry out the day-to-day work of the business
who are suppliers to a business, are they internal or external stakeholders
external, provide raw materials, products or services to a business
who are the local community to a business, are they internal or external stakeholders
external, people, organisations and businesses that live or are located in the area around the business
who are pressure groups, are they internal or external stakeholders
external, groups of people who share a common interest that is related to the business
who are the government to a business, are they internal or external stakeholders
external, the business will make tax payments to both local and central government
what do managers want from their interest in the business
a good salary and opportunities for further career progression
what do shareholders and owners want from their interest in the business
to ensure the business is successful and are interested in how much profit the business can make
what do employees want from their interest in the business
good levels of pay, job satisfaction and job security, and may also be interested in career progression
what do customers want from their interest in the business
good quality and a range of products at reasonable prices
what do suppliers want from their interest in the business
to receive payments on time, and regular orders
what do the local community want from their interest in the business
may be looking for work, which local businesses can provide
what do pressure groups want from their interest in the business
increase knowledge of their cause
what do the government want from their interest in the business
businesses to create more jobs in order to raise more money from taxes and save money on benefit payments
what is the consumers right act 2015
Goods must be fit for purpose, buyer has the right to get their money back/ repaired at seller’s expense
under the consumers right act what must the goods be
described accurately, fit for purpose, satisfactory quality
under the consumers right act what must a service be
service provider must use reasonable care and skill in delivering the service, must be provided in a reasonable time and price
what is the employment law
protects employees from exploitation
what are the four areas of employment legislation that form the basis of employee rights in the workplace
Recruitment, pay, discrimination and health and safety
what is the equality act 2010
requires employers to treat people fairly and not discriminate
what is the national minimum wage act 1998
all businesses must pay their staff a minimum hourly rate
what is the health and safety act 1974
responsibilities that both employers and employees have in keeping the working environment safe
what is the economic climate
The general level of wealth, consumption and activity within a particular area or region.
in what ways does the economic climate affect a business
unemployment, changing levels of consumer income, changes in interest rates, inflation, government taxation including national insurance contributions (NICs) and value added tax (VAT), changes in exchange rates
what is the impact of unemployment
an economy is not making full use of the workers that are available so the economy will not grow as quickly as it could, households have less income, therefore business have less sales
what do savers do when there is an increase in interest rates
receive more interest on their savings. This will encourage them to spend less so that they can save more.
what do savers do when there is a decrease in interest rates
receive less interest on their savings. This will discourage them from saving, so they may spend their money instead.
what do borrowers do when there is an increase in interest rates
have to pay more back for money that is borrowed. This will discourage them from borrowing.
what do borrowers do when there is a decrease in interest rates
have to pay less back for money that is borrowed. This will encourage them to borrow more money to spend.
what is income tax
charged on income, such as wages that have been earned
what is corporation tax
a charge on a company’s profits
what are national insurance contributions (NICs)
charges to cover healthcare, state pensions and employment-related benefits
what is value-added tax (VAT)
a charge on sales of goods and services based on the value of the item sold
what is council tax
charge on property by local councils based on the property’s value and the number of people in a household
