external analysis

Question 1

list types of laws business’s have to comply to with regards to competion law

Answer 1

• business’s cannot conpsire to fix prices with other business’s

-business’s cannot utilise predetory pricing

Question 2

what laws are put in place to protect the enviroment

Answer 2

climate chnage act - regulates how business conduct themsevles with regards to enviroment

-fines can be given for wate on land/water

Question 3

what do consumer laws do

Answer 3

protect the consumer from business’s doing things like misleading customers via adverts

Question 4

what do employment laws do

Answer 4

ensure employee has legal right to fair treatment whilst at work
-must not be trated unfairly based on age,race, gender ect

Question 5

what is GDP what does it mean and what is it used for

Answer 5

GDP is gross dometic product and measures the total vlaue of products produced by a contry, measures economic preformance

Question 6

what is inflation

Answer 6

inflation is an increase in the price of goods and services

Question 7

what is demand pull and cost push inflation

Answer 7

demand pull inflation - demand for products/ services increases so prices go up

cost push - business costs go up so equally prices must go up to cover costs

Question 8

what is deflation

Answer 8

deflation is the oppostite of inflation - when there is not eneogh demand so companies reduce their prices

Question 9

what are exchange rates

Answer 9

exchange rates is the value of one currency to another

Question 10

what does spiced stand for

Answer 10

s- strong
p- pound
i- imports
c-cheap
e-exports
d-deer

Question 11

exchange is 1pound 1.40 euro

convert 420 euro into pounds

Answer 11

420/1.4

(from exteral to pounds you divide)

Question 12

exchange is 1pound 1.40 euro

convert 47 pound into euro

Answer 12

47 x 1.4

(from pound to external you times )

Question 13

what is fiscal polacy

Answer 13

this is done by governemt
fiscal polacy does two things - sets tax rates and controls government spending

increasing taxes decreases spending - which could be done to tackle demand pull inflation

lowering taxes means more economic activity

Question 14

what is monitary polacy

Answer 14

monitary polacy is done by bank of england

monitary polacy is all about altering interest rates in order to control inflation and exchange rates

Question 15

what is open trade

Answer 15

when inports and exports are not regulated

Question 16

what is potectionisum

Answer 16

when government protect domestic business’s and jobs from foriegn competitorse.g tariffs

Question 17

what is globalisation

Answer 17

globalisation is the increase in how connected the business world is
globalisation has lead to business’s opening up in other contries

Question 18

why has there the been an increase in globalisation

Answer 18

• the internet and e-commerse

-global finacial markets -money can move more easily

-cargo ships

-cheap fast travel

Question 19

what is urbanisation and how does it impact business

Answer 19

urbanisation is the increase of population living in a certain area
-this effects decsion making as a firm needs to find a way to taylor to this wider audience

Question 20

how does migration impact decision making

Answer 20

-fill shortages in workforce

-increases demand for certain products

Question 21

what is CSR

Answer 21

corporate social responceability - concept that business’s should go above and beyond in order to boost enviroment and workforce quality of life

Question 22

describe Carrolls pyramid of CSR

Answer 22

philanthropic responcabilites- go above and beyond

ethical respnocablilties - to do the morally correct action

legal responcabilities - following law

economic responsibilities - basic business needs for survial like profit
cannot do anything ethical without this
first

Question 23

what are porters five forces

Answer 23

-barriers to entry

-buyer power

-supplier power

-threat of substites

-rivalry within industry