Business 1.5.1 - 5.5

• What are the 5 types of stakeholders in a business?

  Owners: have money invested, own a share of the profit and make key business decisions

  Suppliers: companies that supply a business with raw materials

  Customers: businesses need to deliver quality products at an appropriate price to customers

  Local community: business operations can affect those living nearby

  Employees: business performance can affect wages & job security
• What is a stakeholder?

  Any individual, group or organisations that is affected by a business and its operations
• What are the impacts and influence of stakeholders on businesses?

  Customers: if customers' needs and wants are changing over time then a business needs to be able to adapt in order to meet these

  Local community: may have less of an impact on how a firm operates

  Employees: more motivated workers mean they work more effectively
• What can conflicts between stakeholders come about due to?

  Conflicts between maximising profits and being an environmentally friendly firm
• What does it mean by a business being e-commerce?

  Selling their products and services to customers over the internet. It offers bigger markets but also more competition.
• What are different types of technology used by a business?

  Social media : most firms have a social media presence to engage with customers

  Digital communication: mobile apps that provide customers with information on businesses products

  Video conference calls: allows employees and other stakeholders to hold meetings while in different countries

  Payment systems: allows for apple pay/ contactless payments which accelerates transaction time
• What are the influences of technology on business activity?

  Sales: E-commerce allows businesses to easily sell their products to customers all over the world without a physical store there

  Costs: much cheaper as firms don't have to invest lots of money in opening stores and do not have to spend much on employing people

  Marketing mix: technological advances can lower average costs and prices for consumers
• What is the employment law and what are its principles?

  Laws that give standards about how businesses treat their employees

  National minimum wage: law states the minimum amount that businesses can pay their staff. Amount depends on age and type of work

  Equality Act (2010): protects people from discrimination at work

  The Health and Safety at Work Act (1974): places responsibility to make sure health and safety of employees is properly managed
• What is the consumer law and its principles?

  Laws that are designed to protect customers against unfair treatment by businesses

  Quality: a product must be of satisfactory quality

  Consumer rights: offering refunds, allowing customers to return faulty goods
• What are the impacts of legislation on businesses?


  Cost: businesses may experience an increase in costs because of new legislation

  Consequences of meeting & not meeting legal obligations: failure to comply with laws and regulations may lead to fines, legal action and damage to reputation
• What are impacts of economic change on businesses?

  Unemployment: a recession leads to high levels of unemployment meaning less money is available to spend

  Decreased income: people's income may fall during a recession meaning less money is being spent on goods and services

  Changes in interest rates: when interest rates are low, consumers are less likely want to save because they get less money in return for saving. When interest rates are high, people have more of an incentive to save money
• What is the importance of external influences on businesses?

  Technology: technological advancements allows a business to produce the same products and services at a lower cost per unit

  Economic climate: describes how well the country and world's overall economy is performing

  Legislation: when legislation changes, businesses can be forced to change their practices