Topic 2

• What is technology?

  The application of knowledge, skills and techniques to improve business performance.
• What are the different aspects of modern business technology?

  • Changing use of ICT
  • E-commerce
  • Digital technology
  • Digital communication
• What is ICT?

  Information and communications technology (ICT) is the computing and communication systems that a business might use to exchange information with stakeholders.
• What are the benefits and drawbacks of ICT?

  • Benefit - has allowed businesses to reduce costs and improve quality, efficiency and competitiveness.
  • Drawback - there are costs in purchasing technology and training staff to use it. Its use may result in redundancies.
• What are the current uses of ICT?

  • Storing of data
  • Producing business documents
  • Designing
  • Internal and external communications
  • Computerised stock control and distribution systems
• What is e-commerce?

  E-commerce is the buying and selling of goods and services using the internet.
• What is m-commerce?

  M-commerce is the buying and selling of goods and services using wireless handheld (mobile) devices, such as smart phones.
• What are the benefits and drawbacks of e-commerce and m-commerce?


  • Benefit - has allowed businesses to access wider markets and reduce costs through automatic ordering using online applications. The business can experience sales increases and become more well-known.
  • Drawbacks - costs increase due to investment in computerised systems and staff training. Distribution costs increase, processing of orders/returns is time consuming. Personal contact with some customers may be lost.
• What is digital technology?

  Where businesses use computer based tools, systems, devices and resources to generate, store or process data. It has many aspects including social media, e-commerce and communication.
• What is digital communication?

  Part of digital technology. It is in widespread use throughout the world, through the use of devices such as smart phones, tablets, desktops and video conferencing. It can also occur through social media platforms.
• What are the uses of digital technology?

  • Organisation
  • Finance
  • Human resources
  • Production
  • Marketing
• What is ethics?

  Where businesses make decisions based on what is morally right rather than what is more profitable.
• What are different types of ethical and environmental considerations?

  • Ethical behaviours
  • Ethics versus profit
  • Environmental considerations
  • Sustainability
• What is ethical behaviour?

  Businesses are increasingly concerned about the ethics of their business behaviour. Making morally correct decisions can be as important to some businesses, as choosing the most profitable option.
• What are the benefits of behaving ethically?

  • Higher revenues - customers are increasingly making purchasing choices based on ethics, with the actual selling price charged being less important in their decision-making.
  • Improved brand/business awareness and recognition.
  • Easier to attract and recruit staff.
  • Increased employee motivation and staff retention.
  • New sources of finance are possible.
• What are the drawbacks of behaving ethically?

  • Higher costs.
  • Higher overheads, such as training and communication of ethical policy.
  • A danger of building up false expectations amongst comsumers.
  • Bad publicity if business is found to be acting 'unethically'.
• What is pollution?

  If a business causes pollution it is affecting the natural environment. This can  damage the condition, health, safety or welfare of animals, humans, plants or property and reduce the quality of life.
• What is sustainability?

  Sustainability is  the idea that goods and services should be made using resources that can be replaced – this could be raw materials or energy requirements.
• What is the economic climate?

  The general situation in a country affecting the wellbeing of individuals, firms and the government in areas such as output, prices and employment.
• What are the different aspects of the economic climate?

  • Interest rate changes
  • Consumer and business spending
  • Levels of employment
  • Income and demand
• What are interest rates?

  Interest rates affect both businesses and consumers. They can represent a reward for saving or a cost of borrowing. Consumers, businesses and the government are all affected by any change to interest rate levels. Interest rate changes will impact the overall performance of the economy.
• What is unemployment?

  Unemployment means being available for work but not having a job or losing the job that you have.
• What is globalisation?

  The free movement of goods, services, people, capital, information and technology, enabling businesses to sell their products anywhere in the world.
• What are the different aspects of globalisation?

  • Benefits and drawbacks of globalisation
  • Competing internationally
  • Exchange rates
  • Imports and exports
• What are the benefits of globalisation?

  • Increased markets
  • Access to cheaper labour and raw materials
  • International specialisation
  • Increased levels of efficiency due to an increased level of competition
  • Transfer of knowledge, skills and technology
• What are the drawbacks of globalisation?

  • International competitors with cheaper costs
  • Power of multinational brands
  • Whole industry closures
  • In the UK, there has been movement away from the manufacturing sector to the tertiary sector
  • Effects of events in other countries
• What is meant by the term exchange rates?

  The exchange rate is the amount of one currency that can be bought with another currency.
• What is the effect of a strong pound?

  
• What is the effect of a weak pound?

  
• What is the acronym for exchange rates?

  Strong

  Pound

  Imports

  Cheap

  Exports

  Dear
• What is legislation?

  Legislation (in terms of business) is where the government makes laws in order to control business actions, in order to protect the needs of stakeholders.
• What are the different aspects of legislation?

  • Consumer, employment, & Health and Safety laws
  • Effects on business of breaking the law
  • Requirements for a safe working environment
  • Impact of legislation on businesses
• What is employment law?

  Employment law provides rights for employees to be protected in the workplace. These include areas such as pay, discrimination, as well as many other contract areas.
• What is a benefit and drawback of employment law?

  • Benefit - protect employees from exploitation and receiving unequal treatment in the workplace. It has resulted in increased fairness and motivation.
  • Drawback - business costs increase, as implementing employee legislation is expensive and time-consuming.
• What is meant by the national minimum wage?

  States the legal minimum that any employee is allowed to be paid.
• What is meant by the nation living wage?

  The minimum amount any employee the age of 25 or over is allowed to be paid.
• What is the equality act 2010?

  The Equality Act 2010 legally protects people from discrimination in the workplace and in wider society.
• What is discrimination?

  Discrimination is the unacceptable treatment of any individual or group of individuals who are termed to be different.  In the UK, it is illegal for an employer to discriminate against an employee on this basis.
• What is consumer law?

  • The UK has laws that are designed to protect consumers from businesses which try and exploit them. The laws protects consumers when they buy goods or services, provides help if they are treated unfairly or if things go wrong and goods are faulty.
• What are the benefits of consumer legislation?

  • Improved reputation
  • Bad publicity is avoided
  • No costs of repair and replacement
  • Avoiding very high fines