BUSINESS CHAPTER 2: INFLUENCES ON A BUSINESS

what is information and communications technology

the computing and communications systems that a business might use to exchange information with stakeholders

intranets

are communication networks which can only be accessed by an organisations employees

extranets

can be accessed by other organisations such as suppliers

e-commerce

the act of buying or selling something online/using the internet

m-commerce

buying and selling of products through wireless handheld devices such as smartphones

methods of digital communication

emails

texts

webchats

social media

video-conferencing

shareholder

a person or organisation that owns part of a company. Each shareholder owns a ‘share’ of a company

telesales

when a business uses a phone when first contacting a customer with the aims of selling a product

ethics

to whether a businesses decisions are morally right or wrong.

profit

measures the difference between the values of a businesses revenue(sales) and total cost.

what are some ethical considerations a business should have to their stakeholders

are suppliers paid on time

are employees treated fairly

are consumers aware of the materials used to make products

are the advertising truthful and fair

how can a business behave ethically

they should consider the whole community and not just the businesses profits when making decisions

ethical marketing

designing new products to reduce damage to the environment

avoiding targeting children with harmful products

not using a dominant market position to set high prices(for medicine)

fair trade products

customers charged higher prices and better trading terms. This is to improve the living standards of people in poorer countries where the products are produced.

social responsibility

a method in which the interests of all groups in society are taken into consideration when making decisions

external costs

when a businesses activities result in harmful effects on other people not directly involved in production

some effects of business activity on the environment

traffic congestion

air pollution

noise pollution

global warming

the use of scarce resources

pressure groups

a group of people with common interests who influence public opinion and decisions by business and governments

environmental responsibility

the decision taking by a business with the intention of protecting the environment

sustainability

methods of production which can be continued in the long term without damage to the environment

ethical objectives

sustainability

disposing of waste

recycling

new methods of transport

economic climate

the key factors within a country such as the level of goods and services produced and the number of jobs available

the economy

is made up of millions of individual consumers, many thousand of businesses and governments. All take decisions on what to buy and produce

interest rates

the cost of borrowing money and the reward for saving . %

loan

is an amount of money provided

overdraft

a flexible loan which businesses can use whenever necessary up to an agreed limit.

income elastic products

thoes whose sales are sensitive to changes in consumer’s incomes

consumer spending

refers to the value of goods and services bought by consumers over a time period, usually a month or a year

globalisation

is the trend for markets to become worldwide in scope.

MNC - multinational company

produces goods and services in more than one country. They are also called transnational corporations (TNCs)

tariff

a tax on foreign goods imported into a country

international trade

is selling of goods and services across national borders

exports

are goods and services produced by a business in one country and sold in another

benefits of globalisation

rapid growth

inward investment

cheaper resources