1.5 Understanding External Influences on Business

• How do digital communication systems impact sales activity?

  They help customers trust businesses and buy effectively
• What advantage does e-commerce provide to businesses?

  It allows businesses to attract global customers
• What is a benefit of a well-designed e-commerce site?

  It can make a business look professional
• How can prices be managed in e-commerce?

  Prices can be updated easily to react to competitors
• What can customers see on an e-commerce site?

  Which items are in stock
• What is a negative impact of e-commerce on sales?

  Increased competition from non-local businesses
• What logistical issue must businesses consider with e-commerce?

  Delivering orders to customers
• What challenge might small businesses face with e-commerce?

  Providing customer service to a large base
• How does e-commerce affect stock management?

  Stock records need to be kept up to date
• How can social media impact sales activity?

  It can help build customer relationships
• What can poor responses on social media lead to?

  A fall in sales and damaged reputation
• What effect can good responses on social media have?

  They can lead to increased popularity and sales
• How do payment methods impact sales activity?

  Convenient payment increases likelihood of purchase
• What challenge do businesses face if they only accept cash?

  Attracting customers becomes increasingly difficult
• What costs are associated with digital communication systems?

  Initial investment leads to long-term savings
• How can remote work reduce costs for businesses?

  It allows operation from smaller offices
• How can electronic communications save money?

  They remove costs of printing and postage
• What savings can video conferencing provide?

  It removes travel costs for meetings
• What is a cost advantage of e-commerce?

  It is cheaper than opening traditional branches
• What are some additional costs of e-commerce?

  Website hosting and online payment fees
• How does social media help businesses with costs?

  It provides a cost-effective communication method
• What benefit do new payment technologies provide?

  Secure and cost-effective payment processing
• What is a feature of online payment systems?

  They allow quick B2B and B2C transactions
• How can businesses use social media in marketing?

  To promote products and gain customer insights
• What is a benefit of social media for businesses?

  It creates brand awareness and loyalty
• How does social media facilitate communication?

  It quickly communicates information to customers
• What is a cost-effective aspect of social media marketing?

  It is a cheap and easy form of promotion
• What is e-commerce?

  Trading between buyers and sellers online
• What is a cost benefit of selling via e-commerce?

  It requires fewer staff and premises
• What are the operational hours of an e-commerce shop?

  Open 24/7 for customer access
• What is a global advantage of e-commerce?

  It can reach a global marketplace
• How quickly can orders be processed in e-commerce?

  Orders can be processed the next working day