6 Influences On Bussiness Flashcards
(34 cards)
What does ethics mean? Adv disadv
-Doing what’s morally right
-improved brand awareness and reputation
-higher revenues ( customers increasingly making choices based on ethics)
-higher costs
-lower sales If price increases
4 environmental considerations for a business
1) pollution
2) waste disposal
3)climate change
4)sustainability
What type of businesses cause pollution ?
How could businesses reduce the pollution they cause?
Impacts of pollution?
Factories
-power factories with renewable energy , encourage people to walk to work, treat waste disposal properly
-poor air quality, damadge to human health , increased carbon emissions
How can the problem of waste disposal be dealt with?
Smaller packaging , recyclable materials
Climate change is..
Ways to reduce it….
Weather patterns changing or average temperatures rising or falling
-using renewable energy sources
Often produced by oil and gas
What’s the economic climate?
How well the country is doing in terms of employment and income
how does the state of the economy effect business?
-sales decrease or increase
-costs cut
-cost effective ways of advertising considered
Whasts employment?
Situation where an individual is paid to for work a business
What’s income ?
Money earned from employment
Falling incomes lead to—— spending
Less
Why are some businesses affected more by falling incomes ?
Because they sell non-essential products
Why might businesses see a rise in sales when incomes are falling?
Sell cheaper / lower quality products
What’s unemployment !
Being available for work but not having a job or loosing the job you have
Effects of high unemployment on the business ?
-shareholder dividends are low as a result of lower sales
Effects of high unemployment on the government ?
Corporation tax may decrease as profits fall.
Effects of high unemployment on banks .
Businesses struggle to repay loans
Effect of high unemployment on suppliers.
Less materials ordered as there’s a fall in demand
What’s globalisation in business ?
How businesses in different countries have become increasingly connected in their activities
Activities associated with globalisation ?
-selling abroad (exporting )
-buying from abroad ( importing)
-moving production abroad
-recruiting workers from other countries
-moving finance between countries
How have countries become increasingly connected?
-development of transport infrastructure
-telecommunications and internet
-free trade arrangements ( no tariffs)
What’s a tarrif?
Tax on imports
What’s a quota?
Limit of quantity of goods imported into a country
