1.5

• Define a stakeholder?

  Individual or group that has an interest in a business.
• What are the different stakeholders of a business?

  • owner
  • employees
  • customers
  • managers
  • suppliers
  • local community
  • pressure groups
  • government
  • competitors
• Possible conflicts between stakeholders of a business?

  • local community and owners
  • suppliers and owner
  • competitors and owners
  • owner and employees
  • pressure groups and owners
  • customers and employees
• How can the local community influence a business?

  • protesting
  • word of mouth
  • asking for regular updates in the state of a business
• How can employees influence a business?

  • working at a high standard
  • strikes
• How can a supplier influence a business?

  • choose to be on time/ not be on time with deliveries
  • decide to put their prices up/ down
• How can the government influence a business?

  • increasing taxes
  • regularly updating the legislation for a business
• How can customers influence a business?

  Giving reviews/ feedback online or by word of mouth.
• What are the 4 different types of technology used by a business?

  • e-commerce
  • digital communication
  • social media
  • payment systems
• What impact has technology had on the marketing mix?

  • product- have become more innovative and customers have had more choice.
  • price- cost savings have allowed prices to be lowered
  • promotion- using digital channels to promote rather than traditional methods
  • place- a large number of businesses are choosing to locate online
• Give one drawback that advancements in technology might have on a business- and its connectives?

  • investing heavily in technology can be very expensive
  • staff may also need training
  • which can increase the costs of the business
• 3 ways to use new technology for a business?

  • online bookings
  • contactless payments
  • social media presence
• Negatives of not complying with business legislation?

  • negative brand image
  • increased costs if you do comply
  • redundancy in order to afford to comply with legislation
  • may need to increase prices
  • fines
  • being affected by pressure groups
  • time consuming
• Positives when complying with business legislation?

  • positive brand image
  • not affected by specific fines
  • less likely to be affected by pressure groups
  • ensures safety of work force
  • can gain contracts with other businesses
• What does consumer law state?

  products should be..

  • fit for purpose
  • to satisfactory quality
  • to be as described
• If consumer law isnt met, what is the consumer entitled to?

  • refund
  • a repair
  • a replacement
• When was the consumer law act made?

  2015
• Consumers have legal rights if...?

  • item is broken
  • unusable
  • not as advertised
• Consumers wont have legal rights if...?

  • product damaged by consumer
  • warranty passed
  • no proof of purchase
  • if consumer changed their minds
  • knew of damage at purchase
• What is employment law about?

  • pay
  • recruitment
  • discrimination
  • health and safety
• What ensures no discrimination in the recruitment process?

  Equality act of 2010
• Which is higher, national minimum wage or national living wage?

  national living
• In the equality act of 2010, what does it say about recruitment?


  There should be no discrimination in the recruitment process.
• In the equality act of 2010, what procedures/ equipment may classify as legislation under the area of health and safety?

  • protective equipment (such as head covers)
  • cleanliness
  • risk assessment
  • health and safety training
  • medical attention and training
• What wider economic changes could affect a business?

  • changes in levels of consumer income
  • unemployment
  • government taxation
  • inflation
  • changes in interest rates
  • exchange rates
• Define disposable income?

  Amount of money that consumers have left after they have paid for all of their living expenses and bills.
• What is a benefit of high unemployment in an economy to a business?

  recruitment may be easier for a business
• Define inflation?

  General rise in the price level of goods and services within an economy.
• Define exchange rate?

  the value of one currency in terms of another.
• What are the impacts of the increase in the value of the £?

  • cheaper to import materials from abroad
  • poor for exports as the price of exports will rise
  • domestic businesses suffer as customers buy cheaper products from abroad
• What are the impacts of the decrease in the value of the £?

  • costs more to import materials from abroad
  • good for exporters as the price for exports in terms of foreign countries falls.
  • good news for domestic businesses as foreign imports become more expensive
• What are the external influences on a business?

  • changes in technology
  • the economic climate
  • changes in legislation
• Give examples of business related changes in technology?

  • social media presence
  • contactless payments
  • online bookings/ websites
• How can a business increase its competitiveness with new technology?

  invest in new machinery to help reduce production costs in the long run
• If there is a rise in economic activity what can a business do?

  • recruit extra staff
  • invest in new equipment
  • research and develop new products
  • spread risk by entering different markets
• If there is a fall in economic activity, what can a business do?

  • cut investment and spreading
  • reduce size of workforce
  • lower prices of products/ services
• Disadvantages of e-commerce?

  • new skills required to build websites
  • transaction fees
  • more competition
  • security risk e.g fraud and hacking
  • delivery and return procedures
• Advantages of e-commerce?

  • cheaper due to less premises needed
  • increased convenience
  • can reach a larger target market
  • can sell 24/7
  • receive payments immediately