1.5 Understanding External Influences on Business

• What is a stakeholder?


  Anyone who is affected by a business
• What are the different types of stakeholders?

  • Owners
  • Customers
  • Employees
  • Local community
  • Government
  • Pressure group
  • Managers
  • Suppliers
• What is an objective for a owner?


  Gain more profits
• What is an objective for customers?


  Businesses to have lower prices
• What is an objective for employees?


  To have higher wages
• What is an objective for the local community?


  For the business to be quiet
• What is an objective for the government?


  To gain taxes from businesses
• What is an objective for pressure groups?


  For the business to be environmentally friendly
• What is an objective for managers?


  To have high wages
• What is an objective for suppliers?


  To gain profitability and growth from the business
• What is a possible conflict between two stakeholders?


  A conflict could be between owners and customers. This is because owners want more revenue whereas customers want lower prices
• What is three types of technology used by a business?

  • Emails
  • Apps
  • Live chats
• How does technology influence business activities in terms of sales?


  It is a really easy way to share information and a good way to communicate with customers. It also uses e-commerce
• How does technology influence business activity in terms of costs?


  There is multiple ways of payments. Some examples include online payments, chip and pin, contactless payments
• How does technology influence the marketing mix of a business?


  The business doesn't need a shop, it could just be online
• What is legislation?


  Different laws
• Some examples of consumers law?

  • Products should be fit for purpose
  • Products should match its description
  • Products should be satisfactory quality
• Some examples of employment law?

  • Recruitment
  • Discrimination
  • Health and safety
• What is the impact of legislation on a business?


  Face with costs and inconvenience of having to refund customers if any laws are broken
• What is a gross domestic product?


  Value of currency in the economy
• What is unemployment?


  Someone who is able to work but doesn't have a job
• What is inflation?


  When the price of goods and services increase over a period of time
• What are interest rates?


  The costs of borrowing money
• What are exchange rates?


  The value of your money in one currency to another
• What is the impact of unemployment to a business?


  The demand of luxury goods and services will fall
• What is the impact of a change in levels of consumer income to a business?


  The demand for goods and services will increase or decrease depending on the level of the consumers income
• What is the impact of inflation to a business?


  The demand of goods and services will fall
• What is the impact of the change in interest rates to a business?


  If the interest rates decrease, more people will buy houses whereas if it increase there will be a decrease in the number of people buying houses
• What is the impact of government taxation to a business?


  If the taxes increase, you will start to earn less money
• What is the impact of the change in exchange rates to a business?


  If the exchange rates are low, more people are likely to go on holiday with the countries currency
• What does SPICED mean?

  • Strong
  • Pounds
  • Imports
  • Cheaper
  • Exports
  • Dearer