Unit 2.1 - technological influence on business activity Flashcards
Name the technological changes that businesses have used and explain their purpose. (4)
Internet marketing - many businesses now use the internet to market their products instead of more traditional advertising media
Web based customer relationships - some businesses have entirely web-based customer relationships, for instance many people now bank online
Electronic point of sale system (EPOS) - systems now use EPOS to control its stock, automatic ordering from suppliers, determine promotions, selling space and staff requirements. Manufacturers can use EPOS systems to reduce stockholding to ensure that suppliers only send materials when they are required
Sourcing materials from businesses - this can be done entirely through the internet through the use of business portals resulting in lower costs and good relationships between the businesses
Name the different computer packages available to businesses. (7)
Word processing
Databases
Video conferencing
Presentational software
Computer graphic packages
Website design
Spreadsheets
Explain the difference between CAD and CAM.
Computer aided design (CAD) is a process whereby designs are displayed digitally, often in 3D and can be viewed from all angles whereas Computer aided manufacturing (CAM) is a process whereby designs are input into a computer system and the computer then controls the production if the item through automation and robotics
Explain the difference between e and m commerce.
Electronic commerce allows consumers to directly buy goods or services from a seller over the internet whereas m commerce is the use of wireless handheld devices
Name the advantages (4) and disadvantages (4) of e/m commerce from a business perspective.
Not tied to expensive shopping sites
Goods can be stored in warehouses on less expensive industrial estates
Smaller businesses can enter the market more easily
Customer service training is not needed, so less skilled and less expensive workers can be employed
Potentially expensive set up costs – website development, warehouses updated for efficient dispatch of goods, stock control technology might need to be updated
Goods need to be delivered to individual customers, rather than in bulk to retail outlets
The return of unwanted goods needs to be organised and monitored
Security measures must be introduced to protect against cyber attacks
Name the advantages (4) and disadvantages (6) of e/m commerce from a customer perspective.
No need to travel to shops, saving time and money
Goods are delivered to the customer’s home
Goods can be returned if they are not suitable
The prices of goods have been lower
Goods that look good online may not be so good in real life
Organising the return of unwanted goods can be inconvenient
Unsuccessful deliveries need to be rescheduled. This problem has been reduced with retailers offering ‘click and collect’ enabling customer to purchase online but collect the goods from retailer shops
Trust can be an issue; customers are wary of fraud, shoddy goods or giving away personal details
Contacting a business online or by telephone can be difficult
Many businesses have closed their local shops and moved to online only
Name the different ways a business can communicate with customers. (4)
Texts
Messaging
Emails
Social media
What are the advantages (6) and disadvantages of digital technology ?
Market their goods through a different form of advertising
Interact with established customers and attract new ones
Respond to requests and complaints quickly
Follow trends in the market
Track the production and marketing strategies of competitors
Respond to publicity posted by other social network users
Costs may rise if expert technology workers need to be employed
Bad publicity will travel quickly across the market
There may be fake publicity put out by some businesses
Cyber security can be an issue
How have consumers benefited from digital technology? (5)
The internet provides easy price comparison and much more information through review sites
More choice
Lower prices
Improved quality (from use of automation and robotics in the production process)
Convenience through home shopping and pre-arranged delivery times
What have been the issues with technology for businesses and its stakeholders? (5)
Cost
Increased dependence on technology - lead to unhappy customers if it isn’t working
Security breaches
Loss of jobs
Closure of high street shops
