unit 2 - influences on businesses

Question 1

technology

Answer 1

-e-commerce: new tech and online shopping, trading online.
-m-commerce: trading using a mobile device, social media access.
-digital communication: speeds up the rate of info being moved around.
no need to travel

Question 2

ethical and environmental considerations.

Answer 2

-ethics are the rules that require a business to operate in a way that is fair and honest.
-often comes at a cost, likely to be a trade off.
-sustainability is the goal.

Question 3

the economic climate.

Answer 3

-interest rates are the cost of borrowing and the reward of saving.
higher rate been people borrow less.
-inflation is propel spending money to quickly so prices will rise as demand rises.
ones spending is another persons income.

Question 4

globalisation.

Answer 4

-if a currency is strong then it buys more of another currency.
-Strong Pound Imports Cheaper Exports Decline. (SPICED)
-Weak Pound Imports Decline Exports Cheaper.
-globalisation has made it cheaper to relocate.

Question 5

legislation.

Answer 5

-when the law changes it’s likely that a business will have to change how they operate.
can be costly.
-national minimum/ living wage.
-equality act.
-health and safety at work act.
-trade descriptions act.

Question 6

the competitive environment.

Answer 6

monopoly- a market which is dominated by 1 seller or produces
things to consider:
-price
-quality
-after sales service
-location
-USP
-delivery
-branding