Influences on business

• 1. commerce means people buying goods online
• 1. commerce allows businesses to sell to more potential customers nationwide or worldwide, which could increase sales
• Technology helps businesses target customers with advertisements based on previous purchases
• Technology improves communication through email, apps, and push notifications
• Machines can produce goods faster and to a high quality
• Computer Aided Design (CAD) can reduce research and development costs
• Digital communication allows businesses to target customers with emails based on previous purchases and suggest items they may like
• Businesses can use apps to send push notifications to encourage people to purchase
• Ethics in business include paying workers above minimum wage, not advertising unhealthy products to children, and avoiding cheap labor abroad to prevent job losses in the UK
• Environmental considerations for businesses include traffic congestion, recycling of materials, waste disposal, noise, and air pollution
• Some businesses may damage the environment to reduce costs and increase profit
• The economic climate affects businesses through interest rates and employment
• High employment can lead to higher sales and increased employment costs for businesses
• Consumer incomes rising results in increased spending on luxury items and higher sales for businesses, potentially requiring hiring more staff
• Globalisation is the process of increasing interconnectedness due to international trade
• Globalisation has increased due to rising incomes worldwide, cheaper transportation of goods, and easier communication and transactions through the internet
• UK businesses can compete internationally by offering better designs, quality, and prices
• Legislation includes laws like minimum wage/living wage, Equality Act 2010, Health and Safety at Work Act, and Consumer law (trade descriptions)
• Laws impact businesses by potentially increasing costs, damaging reputation, and affecting worker motivation
• Risks faced by businesses include PESTLE factors (Political, Environmental, Social, Technology, Legislation, Economic) and competition
• Businesses can minimize risks through strategies like having a business plan, market research, unique selling proposition (USP), training, using experts, and selling products in multiple countries
• Advantages of globalisation for businesses include growth, economies of scale, cheaper resources, and risk diversification
• Drawbacks of globalisation include increased competition, the threat of takeovers, and potential economic risks
• Exchange rates impact businesses by affecting the cost of imports and exports
• Rising interest rates can lead to decreased sales as consumers save more, while falling interest rates can increase sales, especially for luxury goods
• Changes in exchange rates can influence businesses to adjust prices, suppliers, and sales strategies accordingly