1How does ICT impact businesses?
Changes the locations of employees
Able to collect information on customers
For communications
To promote their business
2What is e-commerce?
Selling goods or services on an electronic system
3What is m-commerce?
purchasing goods through mobile devices
4How has e-commerce affected businesses?
Businesses can access a wider market which increases sales
5What is digital communication?
Using devices to transfer information
6What are some examples of digital communication?
Emails
Texts
Webchat
Apps
Social media
Video meetings
7What are benefits of businesses using social media?
Can communicate with customers
Can maintain a good reputation or repair a bad one
Promote yourself or new products
8What are the disadvantages of using social media?
Can damage a business' reputation
9What is the ethics or profit trade-off?
When a decision needs to be made which are morally right or that will result in the highest profit
10How can a business have ethical marketing?
Products that are environmentally friendly
Avoid targeting children
Fair prices
11How can a business operate ethically?
Ethical suppliers
Recycling
Fair trade
12How can Human Resources be ethical?
Offering training
Fair wages
Treating employees well
13What are the drawbacks of being ethical?
fair trade products cost more
providing training is costly
offering fair prices reduced profits
14What are the advantages of operating ethically?
Attracts more customers
Can charge more
Attracts best quality employees
Environmental report attracts positive publicity
15What can happen if a business has bad ethics?
Bad reputation therefore reducing sales and profits
16What are external costs?
When the activities of a business effect other people not just those involved in production
17How do businesses effect noise and air pollution?
Fertlisers in agriculture
Manufacturing produces gases
Transporting emits gas and makes noise
18How may a business be more sustainable?
Use renewable energy sources
Use transport that cause less pollution
Use recyclable materials
Not use chemicals that harm the environment
19How are consumers effected by high interest rates?
Save more
Borrow less
20How are consumers effected by low interest rates?
Save less
Borrow more
21How are businesses effected by high interest rates?
Higher amount of interest on loans so less profits
Less sales as customers save
22How are businesses effected by low interest rates?
Less interest on loans so more profits
Large savings have less returns
Sales may rise
23How does the economic climate effect levels of employment?
Strong climate will see higher levels of employment and higher wages
Vice versa for weak climate
24How does high levels of employment effect businesses?
Higher sales as more people have jobs and money to spend
Increased employment costs
25How are products that are income elastic effected by fluctuating incomes?
These are sensitive to consumer incomes as they're non essential
26Give examples of income elastic products
Luxury travel
Sports cars
Gym memberships
House extensions
Fine food and drink
27How are products that are not income elastic effected by fluctuating incomes?
These are unaffected by changes in incomes as they're essential
28Give examples of non income elastic products
Basic foods
Bus travel
Petrol/diesel
Tap water
29What is globalisation?
The world's economies becoming better connected
30What are the benefits of globalisation?
UK businesses can expand
UK gets investment from other governments
The UK has access to cheaper resources
31What are the drawbacks of globalisation?
Exposed to more competition
Larger threat of takeover
32How can UK businesses compete internationally?
Improve product design
High quality at a lower price
33How are businesses effected by falling exchange rates?
Exports are cheaper
Imports are more expensive
34How are businesses effected by rising exchange rates?
Exports are more expensive
Imports are cheaper
35How do falling exchange rates effect sales of imports?
Sales decrease
Imported products are more expensive so less competitive.
36How do falling exchange rates effect sales of exports?
Sales increase
Exported goods are cheaper, making them more competitive
37How do falling exchange rates effect profits of imports?
Profits decrease
Imported goods are more expensive, increasing costs
38How do falling exchange rates effect the profit of exports?
Profits increase
Products become cheaper overseas, more competitive
39How do rising exchange rates effect profit of imports?
Profits increase
Costs of imported goods are cheaper
40How do rising exchange rates effect the profit of exports?
Profits decrease
More expensive abroad, reducing sales and profit
41How do rising exchange rates effect the sales of imports?
Sales increase
Price of the products are cheaper, more competitive
42How do rising exchange rates effect the sales of exports?
Sales decrease
The product is more expensive in foreign market
43What are the acronyms to remember exchange rates?
SPICED
WPIDEC
44Why might exchange rates not effect sales?
There are other factors such as brand name and quality that may overrule price
45What is legislation?
laws
46How are profits effected by legislation?
Minimum wage laws increase costs
Health and safety training increases costs
Imposing quality standards increases costs
47What are the benefits of providing a safe working environment?
Motivates employees
Avoid expensive fines
48What are the consequences of not following legislation?
Expensive fines
Bad reputation
49What is national minimum wage?
A minimum hourly rate of pay set by the government
50What is the range of minimum wage?
£4.81-£9.50 an hour
This depends on age and status
51What year was the Equality Act?
2010
52What does the Equality Act state?
Employees can't be treated differently because of:
Age, Disability, Race, Marriage status, Religion, Pregnancy, Sexuality or Gender
53When was the Health and Safety at Work Act?
1974
54What does the Health and safety at work act state?
These are rules to ensure the health and safety of employees. This includes:
-Safety clothing and equipment
-Good temperatures
-Sufficient breaks
-A safety policy
-Guards on machinery
55What does the consumer right act cover?
Product safety
The use of information
Product labelling
Sale of products
56What does the consumer rights act say about the safety of products?
Certain things can't be in food products
Not to sell dangerous products
Hygienic production and selling
57What does the consumer rights act say about using information?
Safely store information
Details can't be sold or given without permission
58What does the consumer rights act say about product labelling?
Food must list ingredients
Weight must be stated
Correct information must be used
59What is a monopoly?
When a business has no competition
60How may businesses try to compete?
Better price
Better quality
Developing new products
Advertising
61What is risk?
the possibility of something going wrong but being aware
62What is uncertainty?
A lack of information about a situation. The outcomes are hard to predict
63What are some internal risks?
Employee strikes
Fire or theft
Bad publicity
Lose employees to competitiors
64What are some external risks?
A new competitor
Natural disasters
New laws
65Why do all businesses face uncertainty?
Economic Uncertainty
Competitors
Social Changes
66How can risks be minimised?
Prepare business plans
Invest in training
Using consultants
Selling in more markets
67What is a market?
where buyers and sellers interact and goods and services are sold
68What is competition?
when more than one business is trying to attract the same customers in a market
What are the benefits of facing little competition?