3.2 Influences on business
The importance of external influences on business and how businesses change in response to these influences.
Students need to be aware of the impact influences on business have on the four functional areas of business:- business operations
- human resources
- marketing
- finance.
Technology
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Students should understand the impact of the changing use of ICT and how it influences business activity. E-commerce to access wider markets. Digital communication changing the way businesses communicate with stakeholders. Students are expected to know relevant examples of digital technology/communication. |
Ethical and environmental considerations
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Ethical considerations |
Students should be able to identify and analyse where there may be a possible trade off between ethics and profit. Ethical behaviour requires businesses to act in ways that stakeholders consider to be both fair and honest. Students are expected to know relevant examples of ways in which a business can behave ethically and the benefits and drawbacks of ethical behaviour. |
Environmental considerations:
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Students should be able to demonstrate knowledge and understanding of how business and consumers accept greater environmental responsibility in their decision making and the costs and benefits of businesses behaving this way. |
Sustainability:
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Students should be able to identify and analyse where there may be a possible trade-off between sustainability and profit. |
The economic climate on businesses
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Students should be able to demonstrate and understand how businesses might be affected by changes in the rate of interest. Students should be able to identify how and why businesses might be affected by changes in levels of employment. Students should be able to discuss how demand for products and services may change as incomes fluctuate. Economic theory relating to how/why interest rates change is not required. |
Globalisation
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How UK businesses compete internationally, offering:
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Students should be able to demonstrate knowledge and understanding of globalisation and the benefits and drawbacks that it offers UK businesses. |
Exchange rates |
Students should understand the impact of exchange rates on the profit and sales of those businesses that import and/or export. They will not be asked to calculate exchange rate conversions. |
Legislation
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Students should be able to assess the impact of legislation on businesses, for example cost, training needs, recruitment and the consequences of failure to follow legislation for the business. Students should be aware of the benefits for providing a safe working environment. Employment law including:
Health and safety law including: the Health and Safety at Work Act (1974). Consumer law including trade descriptions. Only brief knowledge of each law is needed. More emphasis should be placed on the effects of the legislation on businesses. |
Competitive environment
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Students should be able to:
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