Influences on Business

• National Minimum Wage


  workers aged between 16-22 have to be paid a certain amount
• National Living Wage


  workers over 23 have to be paid a certain amount (more than NMW)
• Equality Act 2010


  protects employees from discrimination in the workplace, whether pay related or being treated differently
• Factors of EA10


  gender, race, age, sexuality, disability, religion
• Health and Safety at Work Act 1974

  requires all employers and employees to take responsibility for health and safety
• Consumer Law 2015


  the product being sold should be fit for its purpose, match its description, and be of satisfactory quality
• Consequences of CL15


  customers may ask for a refund, repair, or replacement
• Technology's effect on businesses

  makes processes faster but can be expensive and require training
• Ways business can communicate with stakeholders digitally

  social media, websites, email, mobile apps, live chats, video calls
• Ethics


  moral principles of right and wrong
• Examples of ethical issues

  long hours with low pay, dangerous working environments, animal testing, toxic materials used
• Fair Trade


  workers in developing countries receiving fair pay and working conditions, although products are more expensive
• Benefits of acting ethically

  makes customers feel good, motivated staff, high productivity in firm
• Drawbacks of acting ethically

  high labour costs, difficulty finding suppliers, less profit for the business
• Negative impacts on the environment by businesses

  waste, traffic congestion, air pollution, noise pollution
• Sustainability


  working in a way that doesn't damage the Earth for future generations
• Environmental issues at the moment

  Global warming, climate change, resource depletion
• Interest rates


  the cost of borrowing money
• Globalisation


  businesses and countries around the world becoming more connected via culture and trafe
• Benefits of globalisation


  larger market to sell to, cheaper labour
• Drawbacks of globalisation


  foreign competition, exchange rates
• Exchange rates


  the value of one currency compared to another in terms of conversion
• A weak pound is...


  good for exporters, bad for importers
• A strong pound is...


  bad for exporters, good for importers
• Risks in a business

  failure, financial loss, lack of security
• Reducing risks in a business

  making a business plan, market research, research competition