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• What ethical considerations can cause stakeholder conflict?


  Disagreements on what constitutes ethical business practices, like prioritizing profit versus environmental sustainability.
• What are social factors in business?

  Social factors are changes in society's culture, trends, and demographics that influence consumer behavior.
• How do businesses use social factors to adjust to consumer preferences?


  Businesses monitor social factors to adapt their products and marketing strategies to align with consumer interests.
• What are examples of social factors that influence businesses?

  • Demographics: Characteristics like age, gender, and family size.
  • Lifestyle Changes: Shifts in daily living and health trends.
  • Social Trends: Popular behaviors or attitudes in society.
  • Cultural Norms and Values: Shared beliefs affecting consumer preferences.
• What impact does an aging population have on businesses?


  An aging population may increase demand for healthcare services and senior-friendly products.
• How do lifestyle changes affect consumer demand?


  Lifestyle changes can lead to increased demand for products like organic foods and fitness equipment.
• What is a recent social trend affecting businesses?


  The shift towards sustainability is a recent trend influencing product development.
• How do cultural norms and values influence consumer preferences?


  Cultural norms and values shape what consumers consider important, affecting their purchasing decisions.
• Why is it important for businesses to understand social factors?


  Understanding social factors helps businesses stay relevant and anticipate changes in consumer demand.
• What are technological factors in business?


  Technological factors involve new technologies that change how businesses operate and connect with customers.
• How does automation impact businesses?


  Automation allows businesses to perform tasks faster and at lower costs, improving efficiency.
• What role does e-commerce play in modern business?


  1. commerce enables businesses to reach more customers through online shopping platforms.
• What is the significance of communication technology for businesses?


  Communication technology facilitates better connections with customers and improves collaboration among employees.
• What are economic factors in business?


  Economic factors are elements of the economy that influence production costs, consumer spending, and business profits.
• How does artificial intelligence benefit businesses?


  AI helps businesses analyze customer behavior and provide personalized services.
• How do interest rates affect business expansion?


  High interest rates make loans expensive, slowing down business expansion projects.
• What is the effect of exchange rates on international trade?


  A strong local currency makes exports more expensive, potentially reducing sales abroad.
• How does inflation impact production costs?


  High inflation raises the prices of raw materials, increasing production costs for businesses.
• What is the relationship between unemployment and consumer spending?


  High unemployment means less money for consumers to spend, reducing demand for goods and services.
• How do taxes influence business profits?


  High taxes reduce the amount of profit a business keeps, limiting reinvestment opportunities.
• How can AI-powered chatbots enhance customer service?


  They can automate routine tasks and provide personalized experiences
• What is an example of a technological factor that can impact a business?


  The development of artificial intelligence for customer service
• What are the key social, technological, and economic factors that businesses must understand?

  • Social Factors: Demographics, lifestyle changes, social trends, cultural norms.
  • Technological Factors: Automation, e-commerce, AI, communication technology.
  • Economic Factors: Interest rates, exchange rates, inflation, unemployment, taxation.
• Why is it important for businesses to understand technological factors?


  It allows them to improve efficiency and stay competitive
• What is the definition of automation in a business context?


  Use of machines or software to perform tasks with minimal human intervention
• What are the benefits of understanding technological factors for businesses?


  • Improve efficiency and productivity
  • Reduce costs
  • Enhance customer experiences
  • Stay competitive in the market
  • Innovate and develop new products or services
• How does economic growth affect consumer spending?


  It typically leads to increased spending due to higher disposable income
• How do high interest rates impact business decisions?


  They make borrowing more expensive, potentially slowing down business growth
• What is an example of an economic factor that could affect a business?


  Changes in interest rates
• What are key economic factors that businesses need to consider?

  • Interest Rates
  • Exchange Rates
  • Inflation
  • Unemployment
  • Taxation
• How might high inflation affect a business's pricing strategy?


  It could increase their production costs, potentially forcing them to raise prices
• What impact do low interest rates and low unemployment have on business expansion?


  They create a favorable environment for business expansion and investment
• What happens to a UK-based company's sales in the US if the British pound weakens against the US dollar?


  It could potentially increase their sales in the US market
• How does a weakening currency affect businesses that import raw materials?


  It increases their production costs due to more expensive imports
• What are the main functional areas in a business?

  Human Resources, Finance, Marketing, Operations, Sales, Customer Service, IT
• What is the definition of functional areas in a business?


  Functional areas are specific departments that perform specialized tasks to support the business's operations and goals.
• What are environmental factors in business?


  • Aspects of the natural world impacting businesses
  • Include climate change, sustainability, and regulations
  • Businesses can also impact the environment
• How does climate change affect businesses?


  It can disrupt transportation and services, especially in agriculture
• Why are businesses focusing on sustainability?


  To attract customers who care about the environment
• What is an example of a business adapting to environmental factors?


  A clothing company using less water and recycling materials