Influences On Business

• Influences on business whats Computer-Aided Design (CAD), list pros and cons Definition: Allows designers to produce new products using 3D models displayed on computer screens. Advantages: Reduce costs and improve quality are the main benefits, there are a number of different examples: ☑ Speeds up design ➔ simple to edit ☑ Alternative designs can be considered ➔ simple to edit ☑ Producing drawings of finished goods and parts / no need to build models (prototypes) nor finished goods ➔ reduce costs ☑ To view finished goods before manufacture to find best design ➔ improves quality and accuracy of...
• Influences on business whats Computer-Aided Manufacturing (CAM), list pros and cons Definition: Uses computers to operate robots and other machines in production lines. Advantages: ☑ Can be linked with CAD ➔ speeds up the whole production process ☑ Measurements easily transferred to manufacturing process ☑ Less scope for error in production ➔ more accurate ➔ allows for standardised quality ➔ greater customer satisfaction ➔ fewer returns ☑ Used in mass production/flow production ➔ easy to adjust ➔ speed ➔ cheaper ☑ Fewer employees ➔ lower wage costs ➔ less supervision Disadvantages: ☒ C...
• Influences on business whats Information and Communications Technology (ICT) & how can it be used in business The computing and communications systems that a business might use to exchange information with stakeholders. •Communication ➔ through emails / texts / word processing ➔ ordering • Marketing ➔ websites / “spam” • Stock control / customer details ➔ databases ➔ tills ➔ barcodes • Record keeping ➔ and analysis / spreadsheets ➔ finance ➔ online banking • Selling ➔ online auction sites • Research ➔ using the internet
• Influences on business Why would employees be concerned by the introduction of new technology? • May lose jobs ➔ technology may replace need for workers / changes require fewer employees • Promotion opportunities may be reduced ➔ with smaller workforce • Lower morale ➔ lack of job security / promotion opportunities • Fewer hours ➔ reduced pay • Need to familiarise with technology ➔ need to be trained ➔ may need to work harder • Health risks ➔ technology could be dangerous • New skills may be gained ➔ which may lead to higher pay ➔ greater opportunities
• Influences on business whats 3D printing Products and components can be produced using 3D printers working from computer-drawn designs.
• Influences on business what are the impacts of technology on customers Better service ➔ as more work done by machines • Lower prices ➔ as lower total wage bill • Inferior service ➔ because of lower morale of employees • Higher prices ➔ to pay cost of machines • No effect ➔ as customers do not appreciate differences in service
• Influences on business Why would customers be concerned by the introduction of new technology? • Delays in service ➔ consequences of this • Better service ➔ as more work done by machines • Lower prices ➔ as lower total wage bill for the business • Inferior service ➔ because of lower morale of employees • Higher prices ➔ to pay cost of machines • No effect ➔ as customers do not appreciate differences in service
• Influences on business Benefits of creating customer records using a database • More effective data handling ➔ sort and search for customer records quickly ➔ inputting the data • It is easy to make changes ➔ save your work and print it out again • Can create reports ➔ print out records and store hard copies • Can create mail merge ➔ speed up sending correspondence via letters • Marketing ➔ creating customer profile and loyalty scheme
• Influences on business Whats M-Commerce Mobile commerce involves buying goods and services through handheld mobile devices such as smartphones.
• Influences on business Whats E-Commerce Involves the buying and selling of goods and services via the internet.
• Influences on business advantages and disadvantages of purchasing materials using e-commerce [buying on the internet] Advantages: ☑ Can see images of products ➔ can compare many products ☑ Prices of many sellers can be compared ➔ on one computer ☑ No need to travel to suppliers ➔ so costs saved ☑ Can pay online ➔ may save bank charges ☑ May be cheaper ➔ because seller costs lower ☑ Wider choice ➔ from many sellers ☑ Order 24/7 ➔ more convenient for business owners Disadvantages: ☒ Goods not inspected ➔ to see if goods meet the need ☒ Images may be misleading ➔ so quality difficult to...
• Influences on business Whats Business Ethics Definition: Involve a business doing what is morally right for its stakeholders.
• Influences on business Why do businesses have strong ethical policies? • Ideology of owners ➔ beliefs/mission statements/aims • Consumer pressures, as they become more aware of environmental issues and to do business with those who share their ideas ➔ this is all important for the image of business, marketing/commercial reasons ➔ aiming to promote sales and profit, can make more profit by being ethical • Meeting government targets e.g. CO2 emissions/litter/waste ➔ avoids fines/reduces costs • Avoids bad publicity ➔ loss of customers • Concern for employees with need for safe working enviro...
• Influences on business whats Ethical Policy Definition: This sets out the actions that a business will take to ensure that its decisions and actions are ethical.
• Influences on business whats Social Responsibility Definition: An approach to managing business in which the interests of all groups in society are taken into account when making decisions.
• Influences on business whats Animal Rights Definition: Refers to the idea that animals should be treated humanely and protected from exploitation and abuse.
• Influences on business Ways to Operate Ethically: • Using fair trade goods ➔ producers get a higher price • Using biodegradable/recyclable packaging ➔ which will eventually rot away • Recycling schemes/reducing waste ➔ bins near their shops/signage • Food miles ➔ distance food travels from farm to consumer • Giving food away to charities ➔ food banks or charitable donations • Marketing ➔ advertising/sponsorships • Treatment of workers ➔ wages/conditions • Animal welfare ➔ the way animals are treated • Less packaging ➔ less to throw away • Reducing CO2 emissions/carbon offsetting ➔ not...
• Influences on business Ways in which a business can be deemed as acting unethically • Not behaving in a morally correct manner ➔ unfair ➔ not being fair trade, unfair treatment of workers, non-recyclable, environment effects, waste • Exploiting the small businesses/taking advantage of the business/workers/customers • Forcing businesses to close/go bankrupt ➔ creating unemployment ➔ creating poverty • Making it hard for smaller business to breakeven/survive ➔ big businesses paying lower prices so the smaller business can’t cover costs
• Influences on business Protests Resulting from Unethical Behaviour could mean: • Customers with ethical principles could be put off from purchasing from the business ➔ sales revenue may fall • Competition may benefit as customers switch from non-ethical business to ethical business ➔ sales may increase for businesses not involved • Businesses may be forced to behave in a more ethical manner ➔ this could see costs rise ➔ possible increased prices if the costs are passed on to the customer • Poor reputation ➔ could lose customers/ market share • Suppliers difficult to obtain ➔ less stock ➔ l...
• Influences on business Evaluate whether or not it is good for the business to have such ethical policies Advantages: ☑ Benefit from improved worker morale ➔ concern for employees, with need for safe working environment / fair pay and treatment ➔ less absenteeism / lower labour turnover ☑ Showing concern for producers, in third world countries / fair trade ➔ important for the image of the business / marketing or commercial reasons ➔ leading to increased sales with those that share concerns ☑ Consumer pressures ➔ as they become more aware of ethical issues ➔ more likely to recommend business ...
• Influences on business whats External Costs Definition: These arise when a business’ activities result in harmful effects on other people not directly involved in production.
• Influences on business Finite Resources Definition: A large-scale, long-term shift in the planet’s weather patterns or average temperatures.
• Influences on business Climate Change Definition: A large-scale, long-term shift in the planet’s weather patterns or average temperatures.
• Influences on business Renewable Energy Definition: Produced using resources which are not finite, such as wind turbines or wave power.
• Influences on business Environmental Influences on a Business The production, distribution and selling of goods and services has negative effects on the natural environment. These environmental costs include: • noise pollution • air pollution • water pollution • light pollution • litter • congestion • waste • climate change • use of finite resources.
• Influences on business whats Environmental Responsibility Definition: Refers to the taking of decisions by businesses, consumers, governments and other groups with the intention of protecting the environment. Implementing environmentally friendly policies can bring a number of advantages: • reduced business costs • avoiding legal penalties • improved business and brand reputation – environmental friendliness can be a highly effective marketing tool • recruitment and motivation of employees who commit themselves to ethical company objectives • greater customer loyalty from growing number ...
• Influences on business whats Environmental Reports Environmental Reports Definition: Publications describing a business’ environmental performance for the business’ stakeholders.
• Influences on business whats Recycling Recycling Definition: The reuse of raw materials used in making products, often for many times. Examples include reuse of glass, paper and metals.
• Influences on business whats sustainable production Definition: Takes place when producing goods and services does not result in future generations being affected, for example, using up nonrenewable resources such as oil. Businesses are under increasing pressure from consumers and governments to act in a responsible manner and to ensure that our environment and resources are available for future generations to enjoy. There are many ways that businesses can act in a sustainable manner: • reduce the amount of packaging on products • increase recyclability of packaging and the introduction of...
• Influences on business sustainability definition Businesses acting in a responsible manner and to ensure that our environment and resources are available for future generations to enjoy.
• Influences on business Evaluate whether or not it is good for the business to have such environmental policies Advantages: ☑ Reducing waste ➔ leading to lower costs in the long-term ➔ impacting positively on profit ☑ Meeting government targets ➔ avoids having to pay fines ➔ reducing costs and potentially increasing profits ➔ avoids bad publicity ☑ Showing concern for the environment ➔ important for the image of the business / marketing or commercial reasons ➔ leading to increased sales with those that share concerns ☑ Consumer pressures ➔ as they become more aware of environmental issues ➔...
• Influences on business Assess the likely impact on the local community and its environment of having fast food outlets in the town centre. Advantages: ☑ Increase in the number of people in area ➔ might attract custom for other businesses ➔ will lead to greater income / profit for these ➔ more investment in area ☑ More jobs in area ➔ increased spending power for local residents ☑ Other businesses may be attracted ➔ with positive effect on community ☑ Fast food outlets / other businesses will need to train workers ➔ new skills for community ☑ Improvement in community appearance ➔ better tha...
• Influences on business How does Traffic Congestion affect businesses and consumers Businesses: • Timings of deliveries to and from stores • Car share schemes for employees and closer parking for customers • Efficient online ordering and delivery services Consumers: • Car share • Use public transport
• Influences on business How does Recycling affect businesses and consumers Businesses: • Providing facilities e.g. collection of Christmas cards, recycling bins • Reduced use of packaging • Recycling materials within the production process Consumers: • Buy refillable products • Recycle waste • Look for recycled products • Reusing carrier bags • Favouring environmentally friendly producers
• Influences on business How does disposal of waste impact businesses and consumers Businesses: • Safe disposal of waste generated in the production process • Finding alternative uses for waste e.g. breweries using waste to feed animals Consumers: • Safe disposal of domestic waste • Reducing waste e.g. not buying more food than will be eaten by the household
• Influences on business How does Noise and air pollution affect businesses and consumers Businesses: • Reduce carbon emissions e.g. sourcing supplies locally or electric delivery vans • Safe practices to ensure environmental disasters don’t happen • Using filters Consumers: • Reducing carbon footprint e.g. buying from local business, reducing food miles • Low emission cars or alternative methods of transport
• Influences on business whats consumer laws Definition: Laws that have been introduced to prevent businesses from treating their customers unfairly. Businesses can treat their customers unfairly in a number of ways, such as: • by selling goods and services that are not as described – for example, incorrect quantities stated on the packet • by selling products that are unsafe – for example, toys containing unsafe chemicals • by selling products of poor quality or at unfair prices • by selling information about consumers to other businesses without their permission
• Influences on business Legal Responsibilities a Business has to its Customers • Must ensure customer environment is safe ➔ otherwise they may get hurt / they may sue for damages • Condition of goods ➔ must be fit for sale / fit for purpose / as described • Redress for customers • Description of good / service ➔ must be accurate / businesses can be prosecuted • Weights / measures ➔ must be accurate
• Influences on business whats intellectual property Intellectual Property Definition: Property which cannot be seen or touched but is the result of the creativity of an individual or group. This can include: • businesses’ names, or the names of their brands • inventions – for example, a new type of battery • the design of a business’ products • books, paintings and music Just as goods need to be protected from theft and damage, intellectual property is protected by patents and copyrights.
• Influences on business what is patents Patents Definition: This gives its holder the right to be the only user or producer of a new invention for a stated period of time.