T Level Sales, Marketing and Procurement - Element 1: The Business Environment

Practice flashcards covering Element 1: The Business Environment, including business matrices, societal impact frameworks (TIMS), economic levers, social factors, environmental governance (ESG/SDG), and taxation types.

What are the four quadrants of Covey's Matrix based on Importance and Urgency?

Q1: Urgent and Important (Crisis mode); Q2: Not Urgent but Important (Long-term planning); Q3: Urgent but Not Important (Delegate or minimize); Q4: Not Urgent and Not Important (Low-priority tasks).

How does the Eisenhower Matrix categorize tasks for daily planning?

It focuses on task urgency and importance, categorizing them as: DO NOW, SCHEDULE, DELEGATE, and ELIMINATE.

What does the acronym TIMM stand for in the context of PWC's impact framework?

Total Impact Measurement & Management framework.

What are the four quadrants of the TIMM framework used to measure a business's impact?

Economic Impact, Social Impact, Environmental Impact, and Tax Impact.

How is economic impact typically measured in terms of contribution to the economy?

Through Gross Value Added (GVA) or employment.

What are the five 'levers' of the economy mentioned in the context of economic impact?

Economic growth, interest rates, unemployment, inflation, and exchange rates.

What is the typical business response to high interest rates?

Businesses borrow less and invest less, but receive more interest on money saved in the bank.

How does a low unemployment rate affect business wage costs?

Businesses must offer higher competitive wages to secure new employees because there is less competition for jobs.

What is the impact of a weak pound (a fall in the exchange rate) on UK firms that import raw materials?

The weak pound buys less, making the cost of production higher, which may lead to higher prices for customers.

What three social factors affect the habits and spending of customers?

Demographics, tastes and trends, and lifestyles.

What is the 'grey pound'?

The purchasing power of older people, which is increasing in the UK due to an ageing population.

How has the increase in people working from home impacted demand for products and services?

It has increased demand for home office equipment and video conferencing while decreasing demand for central office spaces.

What are SDGs, and when were they established?

Sustainable Development Goals; they were established by the UN in 2015 and consist of 17 goals to be achieved by 2030.

What is the definition of ESG in the context of sustainable business practices?

Environmental Social Governance (ESG) is a set of guiding principles followed by companies and fund managers to ensure they operate in a sustainable and responsible manner.

What are 'green credentials' in business?

Practices such as recycling, minimizing carbon footprints, and cutting down on pollution that make a firm more attractive to environmentally-conscious customers.

What is Corporation Tax?

A financial charge made by the government on a company's profits.

Which tax covers healthcare, state pensions, and employment-related benefits like Jobseeker’s Allowance in the UK?

National Insurance contributions (NICs).

How are Business Rates calculated and collected?

They are levied on non-domestic properties (offices, shops, factories), collected by local councils, and are based on approximately $50\%$ of the premises' rateable value.

What are the consequences for businesses when income tax increases?

Consumers have less money to spend, and businesses expect to sell less, which leads them to reduce investment levels.

How does an increase in Value-added tax (VAT) impact the economy?

Consumers pay higher prices, reducing their purchasing power and causing inflation, which affects business costs.