1.5 Understanding External Influences
- Created by: pinkbeer
- Created on: 27-08-19 15:20
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- Understanding External Influences
- Stakeholders
- Influence the way in which the business operates
- Shareholders
- Big influence on a business
- Being given a share of the profits
- Make money if they sell their shares
- Employees
- Influenced by the businesses performance
- Way a business treats its employees has an effect on the business
- Best possible pay and rewards for their job
- keep their job and to ensure it's secure
- Customers
- Big influence as they buy the product
- Get the best possible service and product
- Best value for money on product
- Managers
- Influence the way the employees act
- Make sure business succeeds
- Ensure job is secure
- Suppliers
- Big influence as they provide the goods to the business
- Increase sales and profits
- Encourage a business to buy from them again
- Grow their business
- Local Community
- Support or object the way in which it operates
- Look after the local area and the people within
- Pressure Groups
- People who join together and try and influence a business
- Encourage consumers to buy more of a product
- Persuading customers to stop buying from a product
- Encourage a business to behave in a more ethical way
- Government
- Impacts how a business operates
- Manages the national economy
- Stakeholder Conflict
- Can have a direct impact on the service to customers
- Business will have to choose which group has biggest influence
- Technology
- Changes rapidly and has a huge impact on a business
- E-Commerce
- Process of using the internet to carry out business
- Need to ensure that customers can find the business
- Social Media
- Number of channels that influence businesses
- Allows a business to talk to customers about the product
- Digital Communication
- Helped to make work quicker and cheaper
- Help operate in other countries
- Payment Systems
- Easier way to pay for products
- Quicker methods for both big and small businesses
- Technology influences on business activity
- Sales
- Allows sales to be made 24/7 and from anywhere
- Increases customers satisfaction
- Costs
- Costs are kept low
- Reduces travel cost
- Can work from home
- Sales
- Legislation
- Laws of the country that the business has to follow
- Protecting the rights of the consumers (Consumer Law)
- Have to provide a product that is of reasonable quality and is fit for its intended purpose
- Consumer Rights Act 2015
- Right to reject within 30 days
- After 30 days have right to repair, replace or refund faulty product
- Retailer responsible for safe delivery
- Not allowed to enforce unfair laws
- Protecting rights of employees and employers (employment law)
- Relates to the way employees are hired and treated
- Recruitment
- Have to do every thing in a fair way
- Advertising vacancies, selecting candidates
- Interviewing candidates, offering the job
- preparing the employee, producing the contract and conducting the induction
- Different arrangements and any checks
- Pay
- Very complex and different laws regulate pay for different roles
- Discrimination
- Cannot discriminate against certain groups
- Cannot rfuse a candidate due to protected characteristic
- Equality Act 2010
- Health and Safety
- Ensures that everyone Is responsible for looking after each other
- HASAWA 1974
- Provide safe place to work, maintain and provide suitable equipment
- Provide training, employees report any accident, report anything that may hurt them
- Report serious accidents to HSE, ensures safety to visitors and must have public liability insurance
- Impact of Legislation
- Legislation changes every year and a business has to change so it complies with it
- Costs of training, equipment, pay, administration and licenses
- Economic Climate
- when employment is high businesses need to put there wages up to attract people. People will have higher income making businesses happier
- Inflation
- If inflation is low a business may not feel comfortable but they are able to buy cheaper of suppliers and employees are less likely to ask for a pay rise
- Interest
- Bank of England only set a base rate
- Tax
- Tax collected for public services affects the amount charged on individual wages
- Also effects amount poeple have left to spend
- Exchange Rate
- Globalisation and technology has caused business to deal with multiple currencies
- Businesses will have to change money dependant on the exchange rate that day
- Strong Pound Imports Cheap Exports Dear
- Stakeholders
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