Unit 2 : Influences Flashcards
(30 cards)
What are the external
influences on business?
TELE + C = Technology, ethics, legislation, the economy, competition.
What is e – commerce?
Electronic commerce – selling products online.
What are m – commerce and
s – commerce?
Forms of e – commerce – selling via mobile devices (apps) and through social media.
Pros of selling online.
24 / 7, wider geographical market, data collection, lower running costs.
Cons of selling online.
Difficult to try products, cost of returns, lack of trust, lack of face-to-face interactions.
List three examples of digital
communication.
Apps, emails, websites, social media, SMS text / mobile phones.
What is an ethical business?
A business that is considered to be ‘fair’ and ‘honest’ by their stakeholders.
List three examples of ethical
business behaviour.
A business that is considered to be ‘fair’ and ‘honest’ by their stakeholders.
Pros of being ethical /
sustainable.
Source of differentiation, charge a higher price, growing consumer interest.
What is a trade – off
between ethics and profit?
When being more ethical leads to lower profit.
What is sustainability?
Meeting the needs of consumers whilst not damaging the environment.
Cons of being ethical
sustainable.
Increased costs, may need to increase price, smaller target market.
What is the economy?
A measure of all the trade between businesses and consumers.
What is an interest rate?
The cost of borrowing money and the reward for saving it.
What is globalisation?
The increasing integration and interconnectedness of world economies.
Impact of a rising interest
rate on most businesses?
Consumption down = revenue down. Debt repayments up = costs up. Profit down.
Pros / cons of higher unemployment.
Easier to recruit / less pressure on wages, but lower spending.
Pros / cons of globalisation for UK businesses?
More choice of suppliers, more potential customers, but more competition.
What is an exchange rate?
The price of one currency in terms of another?
What is SPICED?
Stronger pound imports cheaper exports dearer.
How do exchange rates affect imports / exports?
They get stronger or weaker and therefore affect the price of imports / exports.
How does employment law affect UK businesses?
National minimum wage (costs up), Equality Act 2010 (no discrimination gender etc.)
Is a weak pound good for UK businesses (WPIDEC)?
Good for exporters (exports cheaper), bad for importers (imports dearer)
How does consumer law affect businesses?
Products should be ‘fit for purpose’, ‘as described’ and of suitable quality.
