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1

Impacts of ICT on businesses

The Location of Employees - Wider locations
Data collection and analysis - Digitalised

2

What is E-commerce

Goods and services sold using an electronic system such as the internet.

3

What does e-commerce include?

Businesses selling on websites.
Individuals selling to others through websites such as eBay.

4

What is M-commerce?

A part of e-commerce which happens when a product is bought over a mobile device.

5

What constitutes digital communication?

Email
Texts
Webchat
Teleconferencing/Video-conferencing
Apps
Social media

6

What does digital communication mean for customers?

A better relationship with the business as they are easier to purchase from and contact.

7

What does digital communication mean for suppliers and employees.

Improved communication and ease. For employees it makes it easier to get paid, for suppliers it is easier to receive orders and be paid.

8

What are ethics?

Ethics refers to wether a business decision is thought to be morally right or wrong.

9

Examples of ethical marketing.

Designing products with reduced environmental damage.
Avoiding targeting children with potentially harmful products, e.g. fast food.
Not using a dominant market position to set unacceptably high prices

10

Examples of ethical business operations.

The business may not buy resources from unethical suppliers.
Manufacturing recyclable products

11

Examples of ethical Human Resources

Offering employees opportunities such as high quality training
Paying wages sufficient enough to allow a decent lifestyle

12

Examples of ethical finance

Paying taxes in full
Investing in the local community

13

Sources of air and noise pollution.

Agriculture
Manufacturing industries
Transport
Power stations

14

Examples of environmental considerations for businesses

Traffic congestion
Air and noise pollution
Use of scarce resources
Global warming

15

Examples of how businesses and consumers can show environmental responsibility.

Sustainability-Production
Disposing of waste
Recycling
Creating and using different methods of transport, eg Car share,

16

What decisions can consumers take to help protect the community.

Recycle products at home
Reduce amount of waste
Buy environmentally friendly products
Complain to businesses about harmful practices.

17

Advantages of environmentally friendly and ethical practices.

Advertising points
The ability to charge a higher price for their products
Win new customers

18

Disadvantages of ethical and environmentally friendly policies.

Increases costs
Ensure that they stick to their claims.

19

What are interest rates?

Interest rates are the cost of borrowing money, expressed as a percentage.

20

What would a fall in interest rates mean to consumers?

Less inclined to save as they’d receive less of a return.
More willing to borrow to buy expensive items as the cost of borrowing would be down.

21

What do rising interest rates mean to businesses?

Increasing costs due to increasing loan repayments.

22

Impact of falling interest rates to businesses.

Borrowing costs will be reduced, therefore improving businesses profits.
Businesses with large savings would receive reduced returns.

23

Effects on business of low unemployment.

Lower unemployment means more people will be spending money meaning increased sales revenue and profit, enabling growth to create more jobs and repeat. (Cycle of prosperity)

24

Effects on business of high employment rates.

The possibility of higher sales
Increased employment costs-Skilled workers become scarse and therefore you have to pay more for them.

25

What is consumer spending

The value of goods and services bought by consumers over a period of time, usually a month or a year.

26

What is Globalisation?

The process through which world economies have become steadily more interconnected.

27

How has Globalisation affected the way in which many businesses operate?

Volume of international trade has increased.
People have emigrated to live and work, money has flowed between different countries.
Multinational companies have grown in importance.

28

Why has the pace of globalisation increased in recent years?

Incomes have risen, people can afford products from multinational companies.
Cost of transporting products have fallen.
Electronic communications have allowed even small businesses to sell to global markets.

29

Effects of globalisation.

Increased international trade
People have moved more freely across borders
Development of multinational companies

30

Benefits of globalisation.

Rapid growth
Inward investment
Cheaper resources

31

Drawbacks of globalisation.

New and fierce competition
Threat of takeover

32

Ways UK businesses compete internationally.

Improving the design of their products
Good quality
Lower price

33

What is an exchange rate?

An exchange rate is the price of one currency expressed in terms of another.

34

Effects of exchange rate changes in export and import prices.

Rise: Fewer £ are needed to purchase foreign goods, good for business as cuts costs. Imports=Cheaper. Exports=More Expensive.

Fall: British Exports=cheaper for foreigners, drives up sales. Foreign imports=More expensive.

35

Exchange rates’ effects on businesses sales.

Fall: Boosts international sales as it makes them cheaper.
Rise: Imports cheaper, meaning that imported products are cheaper to the British.

36

What is legislation?

The law is a framework of rules controlling the way in which society is run.

37

List the Employment laws.

The National Minimum wage and the National living wage.
Equality act, 2010
Other

38

What is the Minimum wage and Living wage?

Workers aged 25 or over must receive the National Living Wage of at least £7.20 per hour.
For workers under 25, the national minimum wage continue to apply. These range from £3.30 to £6.70 depending on age and status.
All employees must receive the appropriate rate of pay as a minimum.
Part time and full time.

39

What is the Equality Act?

Employees cannot be treated differently in the workplace on the basis of:
Age
Disability
Race
Gender reassignment
Marriage and civil partnership
Religion or belief
Pregnancy and maternity
Gender
Sexual orientation

40

Describe some other employment laws.

All pregnant employees are entitled to 52 weeks maternity leave
All employees have the legal right to a paid holiday.
Working hours are subject to a legal limit.
Employees have the legal right to choose wether or not they wish to belong to a trade union.
Employees must be given a contract of employment.
Staff are legally allowed to have time off for a variety of reasons such as trade union activities or a dependant person eg Child is ill.