2 Influences On Business Flashcards
(52 cards)
Benefits of ICT
Reduce costs
Improve efficiency
Drawbacks of ICT
Expensive
May result in redudandancy
M-commerce
Use of wireless handheld devices such as smart phones to sell online
Benefits e-commerce and M-commerce
Wider market
More sales
Reduce costs
Drawbacks of E-commerce
Website costs
High competition
Security risks
Drawbacks of M-commerce
App development costs
Security concerns
Not all customers have smart phones
Advantages or business behaving ethically
Positive reputation
Customer loyalty
Avoid legal issues
Drawbacks of ethical behaviour
High costs
Hard to compete on price
Small profit margins
Possible solutions for how business can help environment
Reduce packaging
Recycle waste
Trade-off
Opportunity cost
Economic climate
The overall state of the economy and how it affects businesses and consumers
Interest rates
Cost of borrowing
Low interest rates advantages
Cheap
Encourage investments
Low interest rates disadvantages
Less reward for saving - business earn less interest saving
Improve cashflow - more money left
High interest rates advantages
Earn more interest for saving
May reduce inflation - can reduce cost
High interest rates disadvantages
More expensive
Less consumer spending
How high interest indirectly affects businesses
Less consumer spending
Customers save more
Unemployment
Looking for job but have no job
High employment levels benefits
Increased consumer spending
Improved staff morale - ppl feel secure in their jobs
High employment levels drawbacks
Hard to find workers
Increased wages - too attract workers
Low employment levels benefits
Easy to find workers
Lower wages
Low employment levels drawbacks
Less customer spending
May need to lower prices
Impact of consumer spending on suppliers
More sales as materials needed
Impact of consumer spending on government
Amount received in tax increase
