Unit 2

Question 1

Public?

Answer 1

Owned by taxpayer, run by government, eg NHS, police, education

Question 2

Third?

Answer 2

Owned and run by individuals with sole purpose of helping a group or raising awareness for a cause, eg charities, non-profit organisations

Question 3

Private?

Answer 3

Owned and run by private individuals/groups, eg sole trader, partnership, franchise

Question 4

What is a stakeholder

Answer 4

Groups of individuals with an interest in and an influence on an organisation

Question 5

Examples of stakeholders

Answer 5

Management, employees, owners, local community, suppliers

Question 6

What is a competing aim of a stakeholder

Answer 6

Senior management want to maximise profits whereas customers want low prices

Question 7

What are some internal factors?

Answer 7

Employees, management, finance, technology

Question 8

What influence do employees have?

Answer 8

Quality of production
Skill/ability level
Work rate
Resistance to change

Question 9

What influence do management have on a business?

Answer 9

Quality of decision making - may lead to poor choices

Question 10

What influence does technology have on a business

Answer 10

Keeping it modern, up to date

Question 11

What influence does finance have on a business

Answer 11

Is there capital available for changes to be implemented

Question 12

What are the external factors

Answer 12

PESTEC

Political, economic, social, technological, environmental and competition

Question 13

Explain Political

Answer 13

New/changing legislation, must abide by laws

Question 14

Explain Economic

Answer 14

• changes to interest rate can mean businesses have to pay more for loans/goods
• recessions may reduce sales as customers aren’t spending as much

Question 15

Explain Social

Answer 15

Trends and fashions - product may go out of style

Question 16

Explain Technological

Answer 16

Improving technology may give your business a competitive advantage

Question 17

Explain Environmental

Answer 17

Impact on the environment,

• environmentally minded customers are more likely to shop with you
• businesses can be affected by flooods and have to close premises

Question 18

Explain Competition

Answer 18

Innovative ideas from other companies

- customers may go to competition

Question 19

What is a SWOT analysis

Answer 19

Strengths, weaknesses, oppertunities and threats