Unit 2 Influences On Business Flashcards
Air pollution
Harmful substances and fumes in the air that cause disease, allergies, or damage to humans or other living organisms, or to the environment.
Competition
The presence of other businesses in the same market attempting to sell to the same customers
Consumer law
Laws that are designed to protect the consumer, by ensuring that products and services offered by businesses are safe, and that they deal with their customers in an honest and fair way.
Consumer spending
The amount of money being spent by households on the goods and services they want and need.
Contracts of employment
The legal document that states the terms and conditions for both the employer and the
employee when paying someone to do a job.
Digital communication
Transmitting information between computing devices.
E-Commerce
Transactions that are carried out using the internet. i.e. Amazon
Economic Climate
Key factors within a country such as the level of consumer spending, the level of production, the number of people unemployed, rates of inflation and interest.
Employment Law
These laws govern what can and can’t be expected of an employee, and how a business
may treat its employees.
Equality Act (2010)
This act of parliament is a set of laws that protect individuals from discrimination. It lists the
characteristics that are protected, and that cannot be discriminated against. These are:
Age / Disability / Gender reassignment / Marriage and civil partnership / Pregnancy and
maternity / Race / Religion or belief / Sex / Sexual orientation
Ethical Objectives
Aims that relate to abiding by their moral code in order improve reputation. This could
include trying to act fairly, protecting the environment, or contributing to charitable
activities.
Ethics
The moral principles that determine how a business wishes to operate.
Exchange rates
The price at which one currency can be exchanged for another.
For example, £1:€1.10
To find £250 in Euros, multiply by 1.10
To find €250 in Pounds, divide by 1.10
Export
Selling a product to a customer outside of the country that you operate in.
External Costs
Negative impacts caused on people, places, or other organisations by a business’ activity.
Global Warming
The increase in the average temperature of the earth, leading to negative consequences for
life, caused by the release of carbon dioxide and other greenhouse gases.
Globalisation
The increasingly ‘local’ nature of the planet – businesses operate worldwide, with money,
goods, services, and people moving across national borders.
Health and Safety at Work Act (1974)
Laws relating to processes and procedures that businesses must follow in order to keep their employees and customers safe.
Import
Buying from a company outside your national borders.
Interest Rates
“The reward for saving and the cost of borrowing.” Expressed as a percentage, it is the rate
at which either savings or debts grow over time. Borrowing or saving £1,000 at an interest
rate of 5% means that at the end of the year you would either owe £1,050 or have £1,050
in your account.
Inward Investment
People and businesses from outside of your national borders investing in your country’s
businesses or land.
Level of employment
What percentage of the population who could work, are working. Often a percentage, if the
level of employment is 97%, then it means that 3% are unemployed.
Markets
The place where buyers and sellers meet, to exchange money or credit, for goods and
services of a particular type. i.e. the Car market, clothing market, wheat market, or the stock market
M-Commerce
Business transactions completed on a mobile device such as smartphone or tablet.
Multinational Company (MNC)
A company with offices or divisions in more than one country.
National Minimum/Living Wage
The minimum hourly rate for employees in the UK. It tends to increase each year and changes in April. As of April 2019, the rate for 25 year olds was £8.21/hour. The rate is different for different age groups below that
Noise Pollution
Noise that causes some level of disturbance, either from vehicles, or business operations. It
could include customers arriving or leaving a business.
Recylcing
Converting waste into useable material.
Risk
The chance that an investment might not deliver a profit.
Social responsibility
Businesses needing to act in a way that protects people within society rather than harming them.
Sustainability
Businesses operating in a way that does not damage the environment or use up natural
resources.
Traffic congestion
More vehicles on the roads than they can handle without queues and longer journey times.
Uncertainty
This occurs when it is difficult to predict the outcome. In economic terms, uncertainty leads
to people saving rather than spending money. The level of investment falls.
Waste
Unwanted materials. Businesses may have to pay to dispose of waste.
Waste Disposal
The removal and disposal or destruction of unwanted items or materials. Through either
landfill, incineration, or recycling.
Zero-hour contract
Terms of a job that mean there is no minimum number of hours guaranteed for a worker,
per week. Likewise, there is no expectation that a worker has to accept hours that are offered.
Acronym for reminding yourself of all of the external factors that affect businesses.
PESTLE-C
P – Political issues like a change in government, leading to different types of laws being passed.
E – Economic increases or decreases in consumer spending, interest and exchange rates, or borrowing.
S – Social changes in the fashions and trends that lead consumers to buy and try different products
T – Technological things like Apple Pay have been disruptive they have changed how businesses operate.
L – Legal new laws change the rules and businesses have to change to follow them, increasing costs.
E – Environmental and Ethical changes in what people want to see your business doing
C – Competition what they do will have a big impact on you, their actions will affect your decisions.
