1.5 Flashcards
Question:
What is a stakeholder in the context of a business?
Answer:
A stakeholder in business refers to individuals or groups who are affected by or have an impact on the actions of the business.
Question:
Why is it important for a business to consider the needs and interests of its stakeholders?
Answer:
Considering stakeholders’ needs and interests is crucial for a business to operate successfully and ensure long-term success.
Who are shareholders in a business, and what is their primary objective?
Answer:
Shareholders are individuals or entities owning a portion of a company’s stock. Their primary objective is to maximize returns on their investment
Question:
What are the primary objectives of employees in a business?
Answer:
Employees aim to earn a living, have job security, and be compensated fairly for their work while maintaining a safe working environment
Question:
What is the primary objective of managers in a business?
Answer:
Managers aim to meet the company’s goals and objectives by maximizing profits, minimizing costs, and ensuring efficient operations.
Question:
Who are suppliers, and what is their primary objective in relation to a business?
Answer:
Suppliers are individuals or businesses providing goods or services to a business. Their primary objective is to sell their products or services and make a profit.
Question:
What are the main objectives of customers when dealing with a business?
Answer:
Customers seek high-quality products or services at a fair price, along with good customer service and a positive overall experience.
Question:
What is the primary objective of pressure groups concerning businesses?
Answer:
Pressure groups aim to influence the policies and actions of businesses or governments to promote specific causes or agendas.
Question:
Why is the local community considered a stakeholder in a business?
Answer:
The local community, comprising individuals and organizations in the business area, is a stakeholder with the primary objective of wanting the business to have a positive impact on the community.
Question:
What is the role of the government as a stakeholder in a business, and what is their primary objective?
Answer:
The government is responsible for creating and enforcing laws and regulations affecting businesses, with the primary objective of promoting the public good and protecting citizens’ interests.
Question:
What types of technology do businesses commonly use to improve communications, lower operating costs, and enhance their brand image?
Answer:
Businesses have access to various technologies, including e-commerce, contactless payment systems (e.g., Apple Pay, Android Pay), social media, and digital communications tools.
Question:
How does e-commerce influence business activity, particularly in terms of sales, costs, and the marketing mix?
Answer:
E-commerce serves as a powerful tool for expanding customer bases and increasing sales. It also helps reduce costs by eliminating physical storefronts. In the marketing mix, it provides new channels for advertising and promotion.
Question:
How do contactless payment systems, such as Apple Pay and Android Pay, impact businesses?
Answer:
Contactless payment systems make transactions more convenient for customers, potentially giving businesses a competitive advantage. However, the installation of such systems incurs a cost for the business.
Question:
In what ways does technology influence sales, costs, and the marketing mix for businesses?
Answer:
Technology, such as e-commerce, social media, and digital communications, plays a significant role in expanding sales, lowering costs, and transforming the marketing mix by providing new channels for advertising and communication.
Question:
How has e-commerce impacted costs and the marketing mix for businesses like Zappos and Amazon?
Answer:
E-commerce has allowed businesses like Zappos to save on operating expenses by eliminating physical call centers. Amazon, through e-commerce, expanded its global market reach. In the marketing mix, platforms like Shopify offer customizable storefronts and advertising capabilities.
Question:
How does social media influence sales and advertising for businesses like Glossier and Wendy’s?
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Answer:
Social media, as demonstrated by Glossier, builds relationships and generates leads, increasing sales. Wendy’s has utilized social media as a cost-effective alternative to traditional advertising channels. Social media also transforms the marketing mix by providing new channels for brand awareness and customer engagement
Question:
How do digital communications, including email marketing and tools like WhatsApp, impact businesses?
Answer:
Digital communications offer businesses new channels for reaching customers and closing deals, such as email marketing. It provides a cost-effective alternative to traditional communication channels, as seen with WhatsApp in customer service. The marketing mix is transformed with tools like Mailchimp, offering customizable email templates and sales tools.
Question:
What does legislation refer to, and how does it impact businesses?
Answer:
Legislation refers to laws and regulations passed by governments that dictate how businesses and individuals must conduct their behavior. While following existing laws is usually straightforward, changes in laws may necessitate significant operational adjustments, potentially increasing costs for businesses.
Question:
What are the three key areas of legislation that have significant impacts on businesses?
Answer:
The three areas are consumer protection, employee protection, and health and safety legislation (which can be included under employee protection).
Question:
What is the primary aim of consumer protection legislation, and what areas does it cover?
Answer:
Consumer protection legislation aims to ensure fair treatment of consumers by companies. It covers product safety, standard and quality, customer rights in case of dissatisfaction, and required product information. Compliance with these laws increases business expenditure, potentially reducing profitability.
Question:
What are the effects on businesses when complying with consumer protection laws?
Answer:
Complying with consumer protection laws results in increased business expenditure, impacting profitability. However, it creates a level playing field for businesses, preventing unfair advantages through shortcuts or false claims about products.
Question:
What is the aim of employee protection legislation, and what areas does it cover?
Answer:
Employee protection legislation aims to prevent worker exploitation. It covers pay, working conditions, equality of employment rights (e.g., for marginalized groups), the right to belong to a trade union, and the ability to take industrial action.
Question:
What benefits can businesses derive from meeting employee protection legislation?
Answer:
Meeting employee legislation helps businesses avoid unwanted media attention, reduces the likelihood of legal action, and attracts new employees who are likely to be drawn to businesses fulfilling their legal obligations.