2 - Influences on Busines

• What is another word for a business?

  an enterprise
• What is an entrepreneur?

  An entrepreneur is a person who starts and manages a business, taking on risks in order to do so.
• What is E-Commerce?


  Buying and selling products / services online
• What is another word for advertising?

  Marketing
• What 3 things have to be present for E-Commerce to take place?

  Internet, electronic device, payment method
• What are the advantages of E-Commerce?


  More customers, operates 24/7, easy to use, reviews, deliveries, receive payments immediately
• What are the disadvantages of E-Commerce?

  More competition, employees may need training, scams, not for all generations, you need access to the internet / devices, website could crash
• What is another word for law?

  Legislation
• What 4 things are employees expected to do?

  complete training provided by their employer, use safety equipment tools and wear safety clothing, take responsibility for their own safety in the workplace, report any risks to their employer
• What are the 3 main laws in business legislation?

  Health and safety law, consumer law, employment law
• If a business doesn’t pay minimum wage. What can happen to it?

  the business can be publicly named and shamed. Leading to; a bad reputation, loss of money, loss of customer, loss of employees
• What rights do employees have protected under employment law?

  .Paid minimum wage, paid maternity / paternity leave, to join a trade union, paid sick leave, protection from discrimination (disability, religion, sexuality, gender, race, pregnancy, age), to be safe at work
• What does ethics mean?

  doing the morally right thing
• What are 3 reasons to be ethical?

  increase sales, good publicity, attract more customers
• What are ways of treating workers ethically?

  paying a fair wage, providing good working conditions, allowing flexible working hours
• What are ways of treating suppliers ethically?

  Paying fair prices, having reasonable expectations, paying bills on time
• What are ways of treating customers ethically?

  giving clear and accurate product and service information, good customer service, quality products / services, making the customer feel valued / appreciated
• What are the advantages of being environmentally friendly?

  subsidies and grants (the government offers money to businesses who are willing to invest in environmentally friendly production methods - this can help to reduce costs), lower costs (changes to business activities that lower a business’s impact on the environment can often also lower the business’s costs), increased sales (concerned customers who are aware of environmental issues are more likely to buy from businesses that act in an environmentally friendly way)
• what are the disadvantages of being environmentally friendly?

  Increased costs – producing goods in an environmentally friendly way can often mean spending more money in the first place, as it can require research and investment in new production methods

  Time consuming – becoming environmentally friendly can take up a lot of time, especially in large businesses

  Potential for inaccurate claims – a business that wants to use claims about its environmental efforts must make sure those claims are accurate. Inaccurate claims can cause significant damage to the reputation of a business
• what does the word economy mean?

  made up of individual consumers, businesses as well as local and national governments
• what does economic climate mean?

  the general situation in a country affecting the wellbeing of individual, firms and the government in areas such as output, prices and employment
• consumer spending =

  how much money consumers / customers have to spend, this then depends of employment and interest rates
• do savers want a high or low interest rate?

  they want a high interest to get more money from the banks
• do property owners want a high or low interest rate?

  they want a low interest rate so they pay less on their mortgage
• what does it mean if we have low levels of employment?

  high unemployment meaning the government has to pay benefits
• what does it mean if we have high levels of employment?

  the majority of population is employed
• what does having a weak pound mean?

  the exchange rates change and the currency gets weaker it will be worth less so it will be cheaper for other countries to buy goods from the uk
• what are some benefits of having a weak pound?

  good for a business that exports as its goods will be cheaper in the country the business sells to / may lead to more sales and for local businesses as they will be able to compete better against more expensive imports
• what are some disadvantages of having a weak pound?

  bad for consumers as prices of imports will increase and for businesses that import raw materials as costs will increase which might cancel out the benefits of cheaper export prices
• what does it mean to have a strong pound?

  if the exchange rates changes so the currency gets stronger or appreciates, it will be worth more. It will cost more for businesses outside the uk to buy the uk currency. It will be cheaper for businesses in the uk to buy other currencies
• what are the benefits of having a strong pound?

  good for consumers as prices for imports will decrease so they can buy cheaper products and if a business imports raw materials it will be able to buy more of it for the same uk price
• what are the disadvantages of having a strong pound?

  bad for local / smaller businesses might not be able to compete with cheaper prices and for a business that exports its goods abroad will become more expensive
• what does globalisation mean?

  the free movement of goods, services, people, capital, information and technology, enabling businesses to sell their products anywhere in the world
• what are the benefits of globalisation?

  Access to cheap labour and raw materials, Increased market, transfer of knowledge, skills and technology, Increased levels of efficiency due to more competitions, International specialisation, Become more well known, Profitability
• what are the drawbacks of globalisation?

  International companies with cheaper costs, Effects of events in other countries (Like war), Tariffs (Exporting, Importing, Depends on how much you import and export and where and what product you are importing and exporting)
• what does glocalisation mean?

  businesses adapt their marketing to meet the needs of consumers in that country
• what does exchange rates mean?

  how much your currency is worth compared to other currencies
• what does competition mean?

  when there is more than one business trying to compete for the same customers in a market
• what are things the a business may want to know about their competition?

  quality, product range, customer service, convenience, location, USP (unique selling point), price
• what are the conditions for a market to exist?

  where there are buyers and sellers who make a transaction and exchange goods and services for money