unit 2- Influences on a business Flashcards
1
Q
define ICT
A
Information and Communications Technology.
-systems that a business might use to exchange information with stakeholders
2
Q
Examples of information a business would share using ICT
A
-Prices and product details (customers)
-Resources required (suppliers)
-Customer needs and complaints
-Ideas and suggestions (employees)
3
Q
define intranet
A
Private network system
4
Q
define extranet
A
Public network system
5
Q
define E-Commerce
A
-the act of buying or selling a product using an electronic system such as the internet
6
Q
define M-Commerce
A
-The act of buying or selling products through wireless handheld devices such as smartphones
7
Q
What are the 7 forms of digital communications?
A
-email
-texts
-webchat
-teleconferencing
-video-conferencing
-applications
-social media
8
Q
define digital communication
A
the transmission of information electronically between computing devices
9
Q
what is a reason why a business might use software robots to attract more customers to their site
A
avoid human error and workforce costs
10
Q
define software robots
A
advanced computer programs that can operate a range of activities previously carried out by employees
11
Q
define cloud computing
A
the delivery of specialist computing services such as the storage of very large amounts of data that is provided by businesses using the internet
12
Q
why would a business store on a ‘cloud’
A
if device storage fails there is a backup and is universal access
13
Q
why would retails increase their use of e-commerce
A
covid-19 and location of business
14
Q
define ‘telesales’
A
selling goods and services via telephone
15
Q
define ethics
A
a business decision that is thought to be morally wrong or right. It is made on the basis of what is judged to be morally right.
16
Q
define profit
A
measures the difference between the values of a business’s revenue and its total costs
17
Q
What questions might stakeholders ask to see whether the business is ethical?
A
-Are suppliers paid on time?
-Are employees treated fairly? Paid well?
-Are consumers aware of the materials used?
-Is the business using truthful and fair advertising?
18
Q
What are the 3 legal activities (ethical)
A
-donating profit to charity
-setting up business in areas of high employment
-using environmentally-friendly resources
19
Q
What are the 3 legal activities (unethical)
A
-selling foods high in fat and sugar
-paying managers high salaries or bonuses while many employees receive only a living wage
-tax avoidance
20
Q
what are the 2 illegal activities?
A
-child labour
-paying below the minimum wage
21
Q
what ways can a business have ethical operations?
A
-managers choose not to buy resources from suppliers who are involved in unethical practices
-likely to manufacture products that can be recycled
22
Q
what are some examples of ethical business behaviour?
A
-offering employees the opportunity of high quality training, despite cost
-paying sufficient wages to allow employees a decent standard of living
23
Q
Ways businesses can market their products ethically
A
-designing new products to reduce the damage they do to the environment.
-avoiding targeting children by not having harmful side-effects
-not using a dominant marketing position to set high prices
24
Q
People (HR) What do businesses do in this?
ETHICAL
A
-people are the most important resource
-managers choose to manage their human resources ethically
-not using zero hour contracts.
25
Finance What do businesses do in this?
ETHICAL
-profit will decline in the short-run
-more expensive so lower profit
-spending on local facilities (not boosting profit)
26
what ethical actions can a business take that results in lower profit?
-using environmentally-friendly resources
-providing employees with high quality training
-offering low-priced product to certain groups such as OAPs
-acting in a socially responsible way, taking into account the needs for stakeholders
27
define fair trade products
those which offer better trading terms, such as payment with an order or guaranteeing order levels and a minimum payment rate for goods.
28
what is the aim for fair trade products
improve the living standards of people in poorer countries where the products are produced
29
define social responsibility
an approach to managing businesses in which the interests of all groups in society are taken into account when making decisions
30
what happens to the business when they have an ethical reputation
-attract large numbers of customers
-boost efficiency and profits
31
what happens to the business when they have an unethical reputation
-bad publicity
-reduce sales and profits
32
define environment
the natural world we live in. It is the landscape and its natural features.
33
define external costs
costs of production that arise when a business's activities result in harmful effects to people who aren't directly involved in production or the purchase of the products.
34
what are some examples of external costs
-traffic congestion
-air pollution
-noise pollution
35
what are some natural pollutants
-wildfires
-volcanoes
-lightning
36
what are some agricultural pollutants
-fertilisers
-animal waste
37
what are some industrial pollutants
-factories
-power plants
38
what are some transport pollutants
-cars
-aeroplanes
-trains
-buses
39
what 2 types of resources to businesses use
-scarce or non-renewable
40
when are businesses more likely to make decisions to protect the environment from their activities
-if consumers and pressure groups take action to encourage environmental responsibility by businesses
41
define non-renewable resources
those of which only a limited amount exists such as coal and oil
42
define global warming
the gradual heating of the Earth's surface, oceans and atmosphere
43
define pressure group
a group of people with a common interest who influence public opinion and decisions by businesses and governments
44
define environmental responsibility
the taking of decisions by businesses, consumers, governments and other groups with the intention of protecting the environment
45
define sustainability
methods of production which can be continued in the long term without damage to the environment
46
what methods could businesses take to have more sustainable production
-use renewable sources of energy, solar and wind
-products can be recycled or from renewable materials
-producting goods and services without the use of chemicals
-recycling
47
what methods could customers and consumers take to make sure businesses have a sustainable production
-use transport that don't cause pollution
-recycle
-buy environmentally-friendly products
-complain to businesses when they are seen to damage the environment
48
what consequences could the Earth face when a business does not have sustainable production methods
-melting of ice- rising sea levels/flooding
-changes in weather patterns
-shortages of water and drought
49
define recycling
the reuse of raw materials used in making products, often for many times
50
define environmental reporting
the publication of a business's environmental performance to the general public
51
define the economy
a term that is used to refer to all the people and businesses that buy and sell products
52
define economic activity
the amount of buying and selling that takes place at a given moment in time
53
define economic growth
when there is an increase in the market value of the goods and services produced by an economy over time.
-measured by GDP
54
define economic boom
a period of increased demand for goods and services and rapid growth
55
define recession/bust
a period when the level of demand and output falls every month for at least 6 months
56
define downturn
a negative change in output and demand for goods and services
57
define upturn
an improvement or upward trend in demand and output of products and services
58
define average rate of growth
the mean/average of the growth rate over several years, calculated by Total GDP/number of years
59
define consumers
individuals who buy goods and services from businesses
60
define economic climate
the state of key factors within a country such as the level of goods and services produced and the number of jobs available
61
define interest rates
the cost of borrowing money or the reward for saving money, expressed as a percentage
62
define overdraft
a flexible loan which businesses can use, whenever necessary, up to an agreed limit
63
define consumer spending
the value of goods and services bought by consumers over a time period, usually a month or a year
64
define income elastic products
those whose sales are sensitive to changes in consumers incomes
65
define ethical objectives
A business’ goals that relate to fair business practice or moral guidelines and make a positive contribution to the business’ reputation.
66
define noise pollution
A type and level of noise that is excessive and disturbing to people or animals.
67
define traffic congestion
The effects of overuse of transport networks, for example slower speeds, traffic queues and longer journey times.
68
define disposal of waste
The removal, storage or destruction of unwanted material. Methods include recycling, burning and landfill sites.
69
define objective
A specific statement that defines a precise goal that can be measured and delivered within a given time.
70
define not-for-profit organisations
Associations, charities, co-operatives or voluntary organisations set up to further non-monetary ideals such as cultural, educational, religious and public service.
Profits/losses are retained/absorbed.
71
define social objectives
A business’ goals that relate to fair treatment of the people concerned:
customers, investors, suppliers or workers.
72
define local community
The individuals, other businesses and organisations that are located close to the business. The business interacts with these groups.
73
define globalisation
the process where the world is becoming increasingly interconnected and interdependent as a result of more trade
74
define outsorcing
involves getting another business to provide to provide a service/make a product for you
75
Why does a business use outsourcing
-to get products needed to provide customers
-increase the efficiency of the business
-to specialise is what they are good at
76
what are the good impacts of globalisation on UK businesses
-increased customers
-firms become more efficient
-increased access to workers
-cheaper imported supplies
-increased use of techonlogy
77
what are the bad impacts of globalisation of UK businesses
-more competition
-powerful international brands
-decreased in skilled manufacturing
-as we are interconnected- we're more vulnerable to issues in other countries
78
define multinational company
produces goods and services in more than one country.
79
define international trade
the selling of goods and services across national borders
80
define exports
goods and services produced by a business in one country and sold in another
81
define tariff
a tax on foreign goods imported into a country
82
define growth
when a business sells increased quantities of its products
83
define economies of scale
the cost of producing a single unit falls as output increases
84
define inward investment
foreign investors investing in or purchasing goods of a local economy
85
define takeover
when one business buys control of another one
86
define quality
the extent to which a consumer is satisfied with a product
87
define price
the amount a business asks a customer to pay for a single product
88
define exchange rate
the price of one currency expressed in terms of another
89
define imports
goods and services purchased from overseas customers in the domestic market
90
how will a fall in interest rates affect saving by consumers?
Consumers may decide not to save, as the interest rates they receive will have been reduced. They may decide to spend existing savings and save less in the future.
91
how will a fall in interest effect spending by consumers?
They will be more willing to borrow money to buy expensive items. Due to lower interest rates reduces the additional amount they have to pay
92
what does rising interest rates have an effect on a business
-large increase in the amount of interest it pays on its existing loans
-increase costs, reducing profit
-unable to repay loans so stop trading
93
what effects does falling interest rates have on a business
-good for borrowing money
-costs will reduce, improving the profit
-large savings may receive reduced returns
94
what 2 significant effects on businesses are caused by an increase in the level of employment
-the possibility of higher sales
-increased employment costs
95
define legislation
a set of rules that govern the way society operates. It is another word for 'laws'
96
What are the three types of laws of legislation
-Employment law
-Health and safety law
-Consumer law
97
define the national living wage
an hourly rate of pay which is set by the government.
98
What 2 other laws includes the employment laws
-National Minimum Wage and Living Wage
-Equality Act 2010 (cant discriminate or fire)
99
The employment laws say that employees cannot be treated differently in the workspace on...?
-age
-disability
-race
-gender reassignment
-marriage
-religion/belief
-pregnancy
-gender
-sexual orientation
100
What does the employment laws state?
-holiday
-working ours
-trade union membership
-contract of employment
-compassionate leave
-provide a safe working environment
-provide suitable training
101
How are businesses affected by the employment laws?
-training implications= Personnel (HR) departments need to keep records
-profits= there will be an increase cost/lower profit but could also improve motivation
-employment= numbers may be lower, workers replaced by machinery
-employee's rights= increase cost, but flexibility may improve motivation
102
define discrimination
treating one person differently from another without having good reasons to do so
103
define a part-time employee
works for a proportion of the working week
104
define a trade union
a group of workers who act together to improve their pay and working conditions
105
define a contract of employment
a legal document stating the hours, rates of pay, duties and other conditions under which a person is employed
106
Define the Heath and safety at work act 1974
prevents businesses putting employees in danger and so protects the workforce
107
What activities does the Health and Safety at Work Act cover?
-Installation and maintenance of safety equipment and clothing
-maintenance of workplace temp
-giving employees sufficient breaks
-providing protection against dangerous substances
-fitting guards on machinery
-writing a displaying a safety policy
108
What other actions for the employees does the Heath and Safety at Work Act state?
-employees to follow procedures to take care of their own safety and others
-have to carry out inspections
-carry out investigations following any inccidents
109
How are businesses affected by Heath and Safety Laws?
-time-consuming
-increases cost =to meet requirements, training, install correct equipment, inspections
-motivate workers
-prevents paying large fines or paying employees who can't attend work due to sickness or an accident
110
what does the consumer laws do?
prevent businesses from treating their customers unfairly
111
what ways can businesses treat their customers unfairly?
-selling goods and services that are not as described
-selling products that are unsafe
-selling products that don't work properly or at unfair prices
-selling information about consumers to other businesses without permision
112
What does the consumer right act 2015 cover?
-product quality
-return goods
-repairs and replacements
-delivery rights
-product going missing before delivery
-late delivery
113
define markets
where there are buyers and sellers
114
define direct competition
Businesses that sell the same type of product or service
115
define indirect competition
Businesses that do not sell the same type of product or service but are still in competition with each other
116
What are the 5 competitive factors
-price
-quality
-location
-product range
-customer service
117
define competition
when more than one business is attempting to attract the same customers
118
define monopoly
when a business does not face any competition in a particular market
119
define market share
the percentage of sales in a particular market recorded by a business
120
what three ways does firms in markets with a small number of rivals compete in?
-Price competition
-competing by developing new products
-Competing through advertising
121
what is an example og a market in the UK where a monopoly exists
the supply of water to homes and businesses
122
define uncertanty
where there is a lack of information about a situation. this means the outcome or consequences are very difficult to predict
123
define risk
the possibility of something going wrong
124
what are 4 internal risks that businesses may face
-employees refusing to work
-fire or theft
-bad publicity
-loss of 'best' employees
125
what are 3 external risks that businesses may face
-New competitors
-Natural disasters
-Laws
126
what would the effect on the business be due to risks
-lower sales
-reduced profit
127
define business plan
a document setting out what a business does and what it hopes to achieve in the future
128
what 4 ways can businesses minimise risks
-prepare business plans
-invest in training
-using experts and consultants
-selling in different markets
129
how will a business plan minimise risks
-provide a greater understanding of what might happen in the market in the future
-business can be prepared
-reduce risk
130
how will investing in training minimise risk
-deal with insecure IT systems and cybercrime
-deal sensitively with dissatisfied customers
-manage crises such as flooding
131
how will using experts and consultants minimise risks
-reduces the chance of any major error
-reduce the risk of falling sales as a result of bad publicity
132
how will selling in different markets minimise risks
-reduces risk of sales falling if a new competitor emerges or if consumers' tastes or fashion changes
133
define diversification
-when a business starts selling new products in new markets
134
define recession
when the value of an economy's output of goods and services falls for six months or longer
