1.5 understanding external influences on business Flashcards
(25 cards)
business stakeholders
person/ group that have an interest in a business
internal stakeholders
shareholders: part owners, make decisions, influence aims&obj
managers: implement decisions made by owners, oversee work
employees: carry out day to day work of the business
external stakeholders
customers: buy product or service firm the business
suppliers: other businesses that supply a business with products or service
pressure groups: people, organisations that are located in the area
gov: business will make tax payments
priority of internal stakeholders
owners: business success, managers: good salary, job progression, employees: good pay, job satisfaction & job security
priority of external stakeholders
customers: good quality & products range, suppliers: regular payments & orders, local community: jobs, pressure groups: increased knowledge of their cause, gov: want jobs to raise tax money
how internal stakeholders are affected by business activity:
owners: may decide to grow stores, expect to see sales, will cost, might affect profits, affects amount of dividends
managers: set new targets, take on responsibilities, opportunities for progression,demotivated if no progression
employees: job security, opportunity for promotion, resentful if not offered opportunity
how external stakeholders are affected by business activity:
suppliers: benefit from increased order, more profits, if higher demand, business might use other supplier
local community: more jobs, may have increase noise or traffic
pressure group: protest if their cause if affected, deter other business from coming
government: more jobs & tax, other businesses might lose money, less tax
how internal stakeholders influence business activity:
owners: make decisions, provide funding for growth
managers: make some recommendations that influence activity
employees: limited influence, can affect business by not working at all / properly
how external stakeholders influence business activity:
customers: buy products/ services, feedback, recommend or deter others from using business
suppliers: changed in quality or service reliability can impact
local community: can support, might protest through council if negatively affected
pressure groups: improve conditions for employees
government: pass laws, tax, increased grants/ funds
e commerce
s: attract customers around globe, sell at any time, receive payment immediately, reduced overheard costs
w: more competition, employees need new skills, procedures required for deliver & return, maintain& update tech
social media
cheap advertising, customers ask questions & express views, contact with other businesses, recruitment
payment methods
chip & pin, contactless, apple pay
impact if digital communication on costs
more employees work remotely, reduce office cost,email or message more cost efficient than postage, video call, reduce travel costs for face meetings
impacts of e commerce on cost:
few staff, smaller premises, automates tasks. costs for websites, fees for online payment
impact of digital communication on marketing mix
product: adapted at accessed easily in convenient format for customer
price:money saved can keep costs low
place: customers can access services regardless of where they are
promotion: newsletters, check summoner behaviour online
consumer rights act
goods must be: fit for purpose, described accurately, good quality
services must be: provider must have skill, provided in a reasonable amount of time, good price
minimum wage act
varies across different age groups, (23+ living wage), must pay minimum hourly rate, cannot pay different rates for those doing similar jobs
equality acts (protected characteristics)
age, sex, disability, gender reassignment, religion, marital status, maternity and pregnancy, race, sexual orientation
health & safety act
staff training, safety equipment, drinking water, toilets & suitable washing facilities, first aid
consequences of meeting legal obligations:
staff work harder, higher business efficiency, staff stay working, reduce recruitment costs, good rep
consequences of not meeting legal obligations:
court, expensive legal fees, fines & compensation of breaking employment law, bad rep, suppliers f stakeholders don’t was association
impact of unemployment
less income in household, lower sales as people spend less, demand for products & service may be high, consumers want cheap alternatives
changing consumer income
decrease: basic items have high demand, luxury have low demand
increase: basic items low demand, luxury high demand
changing interest rates:
