1.5 Understanding External Influences on Business

Question 1

3 internal stakeholders

Answer 1

Shareholders
Managers
Employees

Question 2

5 external stakeholders

Answer 2

Customers
Local community
Suppliers
Pressure groups
Government

Question 3

Managers objectives

Answer 3

A good salary and opportunities for career progression

Question 4

Owner objectives

Answer 4

Business success and profits

Question 5

Employee objectives

Answer 5

Good pay, job satisfactio and security, career progression

Question 6

Customer objective

Answer 6

Meet customer needs and value for money

Question 7

Supllier objectives

Answer 7

Ontime payments, regular orders

Question 8

Local community objectives

Answer 8

Labour and minimal disruption to the area

Question 9

Pressure gorups objectives

Answer 9

Increase knowledge of cause

Question 10

Government objectives

Answer 10

More jobs and more taxes

Question 11

Stakeholder conflicts eg

Answer 11

Managers and owners
Government and owners
Customers and suppliers

Question 12

4 types of technolgoy used in business

Answer 12

E-commerce
Social Media
Digital Communication
Payment Systems

Question 13

Advs of ecommerce

Answer 13

Large market
Sell at any time
Recieve payments instantly
Reduced fixed costs

Question 14

Disadvs of ecommerce

Answer 14

More competition
New employee skills
Delivery procedures needed
Maintain and update software

Question 15

3 social media uses in business

Answer 15

Sales and marketing
Interacting and recieving feedback from customers
Communicating with stakeholders

Question 16

Digital communication allows for

Answer 16

Quick and easy communication internally and externally

Question 17

Payment method advancements eg

Answer 17

Chip and Pin
Contactless payment

Question 18

How does technology affect sales

Answer 18

It is easier to contact a business so more sales
Bigger markets to sell to
Better promotion
More convenient to buy things

Question 19

How does technology affect costs

Answer 19

Transport costs decreased due to digital comms
Fewer staff and premises needed
Cheaper promotion
A percentage fee on some payment methods

Question 20

Consumer law is

Answer 20

Any piece of government legislation designed to protect consumers from poor products and poor business practices

Question 21

The two UK consumer legislations

Answer 21

Consumer rights act 2015
Consumer protection act 1987

Question 22

The Consumer Rights Act (2015)
states goods must be

Answer 22

Described accurately
Fit for Purpose
Satisfactory quality

Question 23

The Consumer Rights Act (2015)
states services must be

Answer 23

Care and skill during the service
Accurate verbal and written info
Provided in reasonable time
Reasonable price

Question 24

The Consumer Rights Act (2015)
returns rules

Answer 24

Available to customers within 30 days with a full refund
(only if it violates the legislation)
Responsibility for faults falls on customer after 6 months

Question 25

Consumer protection act(1987) states that

Answer 25

Any consumer can claim against a producer if there is a manufacturing defect

Question 26

4 parts of employment law

Answer 26

Recruitment Pay Discrimination Health and Safety

Question 27

Recruitment in emplyment law

Answer 27

responsibilities and job description listed correctly, and what an employee can and cant od during the process

Question 28

Pay in employment law

Answer 28

Ensures the employees are recieving at least the minimum rate

Question 29

Discrimination in emplyment law

Answer 29

Employers must treat people without bias and ot based on their personal aspects

Question 30

Health and safety in employment law

Answer 30

Ensures employees are safe at work

Question 31

The equality act(2010) states

Answer 31

People have protected characteristics that cant have an impact on recruitment

Question 32

Legislation leads to

Answer 32

Extra costs for businesses

Question 33

Avantages of meeting legislation

Answer 33

Staff are more productive Reduced employee churn Better reputation

Question 34

Disadvantages of not meeting legislation

Answer 34

Expensive fines Bad publicity Suppliers and stakeholders reluctant to involve themselves in the business

Question 35

The economic climate impacts the business in 6 main ways:

Answer 35

Unemployment Consumer income Interest rates Inflation Tax Exchange rates

Question 36

Effect of new technology on business

Answer 36

New opportunities by using it Threats from competitors using it

Question 37

Effect of new legislation on business

Answer 37

Adapting products Changing operations and systems Increased costs More money to reinvest

Question 38

Business response of economic climate changes

Answer 38

Change in prices Chnage in products Chnage in promotion Change in place