1.5 - external influences

Question 1

what is a stakeholder?

Answer 1

someone that has an interest in the business

Question 2

what are some stakeholders? (13)

Answer 2

shareholders, business owners, managers, employees, customers, suppliers, banks and finance providers, trade unions, government, locals, pressure groups, competitors, media

Question 3

what are the differences between stakeholders and share holders?

Answer 3

a stakeholder has an interest and may work for a business but doesn’t own it whereas a shareholder does

Question 4

what are internal stakeholders?

Answer 4

internal people to the business

Question 5

what are connected stakeholders?

Answer 5

connected to the business via a contract

Question 6

what are external stakeholders?

Answer 6

relationship isnt based on a legal contract

Question 7

what might shareholders be interested in?

Answer 7

success and growth, return on investment and profit on dividends

Question 8

what might managers and employees be interested in?

Answer 8

rewards, job security, promotion

Question 9

what might customers be interested in?

Answer 9

value for money, quality and customer service

Question 10

what might suppliers be interested in?

Answer 10

continued, profitable trade with business, financial stability

Question 11

what might banks be interested in?

Answer 11

can business repay loans? cash flows and profitability

Question 12

what might the government be interested in?

Answer 12

taxes, helping business to grow, compliance with legislation

Question 13

what might locals be interested in?

Answer 13

success, compliance with local laws and regulations

Question 14

what might pressure groups be interested in?

Answer 14

business acting honestly and fairly in best interests of the customers

Question 15

what is technology?

Answer 15

application of knowledge, skills and techniques to improve business performance

Question 16

what are the benefits of changing uses of tech?

Answer 16

allows business the reduce costs and and improve quality, efficiency and competitiveness

Question 17

what are the drawbacks to changing uses of tech?

Answer 17

there are costs to buying and training staff to use the new tech, jobs may also be lost

Question 18

what are the benefits of e-commerce?

Answer 18

allows access to wider markets and reduce costs through automatic orders using online applications, business can become more well known and increase sales

Question 19

what are the drawbacks to e-commerce?

Answer 19

costs increase because of investment into computerised systems and staff training, distribution costs increase, processing orders is time consuming, personal contact may be lost

Question 20

advantages to digital communication (5)

Answer 20

cheap and easy to operate, data can be stored electronically saving cost of storage, can translate things, teleconferencing saves time and money, high quality advertising

Question 21

disadvantages to digital communication (5)

Answer 21

unreliable, communication overload leads to delays, equipment may not work, environmental and health concerns about electronic transmission, training requirements and employees expected to check in when not at work

Question 22

what are e-payments?

Answer 22

paying of staff directly into their bank accounts, collect payments from customers, making payment to employees and suppliers through electronic transfer

Question 23

benefits of e-payments (4)

Answer 23

reduce costs of paying in cash, provide quicker receipt of money, convenient, no need to hold cash

Question 24

drawbacks of e-payments (4)

Answer 24

cost of buying and using payment systems, some dont want to use it, risk of fraud, not all customers have access to required tech

Question 25

benefits of tech (6)

Answer 25

decreased costs, improved quality, increased comm options, helps marketing, improves financial efficiency, easier to recruit and retain employees

Question 26

what is legislation?

Answer 26

laws made to protect the needs of stakeholders

Question 27

what is the employment law?

Answer 27

it provides rights for employees to be protected

Question 28

what are benefits to the employment law?

Answer 28

prevents exploitation and unfair treatment in the work place, fairness and motivation

Question 29

what are the drawbacks to the employment law?

Answer 29

costs increase as implementing employee legislation is time consuming and expensive

Question 30

what impacts might there be on a business if the national minimum wage is increased? (4)

Answer 30

wages increase meaning costs will too, jobs may be lost and prices may rise to support the new legislation, some might use tech to replace employees, some may choose to pay above the minimum wage to retain and attract employees

Question 31

what is the equality act?

Answer 31

it prevents employees from getting discriminated against in the work place

Question 32

what types of discrimination is protected?

Answer 32

gender, maternity, marital, disability, race, age, sexual orientation, religion, trade union membership, status as part time or fixed

Question 33

what areas is it illegal to discriminate against?

Answer 33

recruitment, employee contract, pay, promotions, training, fringe benefits, employee dismissal

Question 34

what is the health and safety act?

Answer 34

all employers are expected to look after their employees

Question 35

drawbacks to the health and safety act

Answer 35

business costs increase because training, expensive, failure to meet laws can result in unlimited fines and jail

Question 36

benefits to the health and safety act

Answer 36

workers are more loyal, more happy and motivated

Question 37

what is the consumer law?

Answer 37

protects consumers from scams and exploitation and wrongful treatment

Question 38

benefits of consumer law

Answer 38

better reputation, no repair or replacement costs, bad publicity avoided, avoid big fines

Question 39

drawbacks of consumer law

Answer 39

training costs, increased quality control, high quality raw materials, extra production processes

Question 40

what is economic climate?

Answer 40

general situation in a country affecting wellbeing of people, firms and gov

Question 41

aspects of economic climate

Answer 41

change in interest rates, inflation, consumer income, taxation , unemployment, exchange rates

Question 42

what is unemployment?

Answer 42

being available with work but having no job

Question 43

what are advantages to high employment? (2)

Answer 43

higher income so spending will increase, motivation

Question 44

what are disadvantages to high employment? (3)

Answer 44

few available workers, wage increase because of demand, increased staff turnover

Question 45

how does consumer spending affect a business?

Answer 45

if customers have less money to spend this means that there wil be a drop in profit

Question 46

what is inflation?

Answer 46

the general increase in prices and fall of purchasing power of money

Question 47

what are the effects of inflation on cost?

Answer 47

wage and raw materials rise, workers ask for more pay, pay disputes, job losses as people can be sacked to fulfil these new higher wage prices, reduced quality

Question 48

what are the effects of inflation on demand?

Answer 48

reduced demand due to high prices, cheaper alternatives wanted instead

Question 49

what will increased interest rates directly affect?

Answer 49

loans are more expensive now, increased costs, business may choose to save to earn higher interest, business may close if unable to pay back

Question 50

what are external influences?

Answer 50

businesses will be affected by changes outside the business that they cannot control

Question 51

external changes (3)

Answer 51

tech, economic climate, legislation