National 5 Business Management 1.2 Influences on Business
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The document discusses the key stakeholders that influence businesses and the external factors that impact businesses. The main stakeholders mentioned are owners/shareholders, customers, managers, government, employees, and community. It also outlines some of the main external factors, or PESTEC analysis, that affect businesses, including political, economic, social, technological, environmental, and competitive factors. It provides examples of each type of factor and how they can influence business operations and success.
National 5 Business Management 1.2 Influences on Business
- 1. 1.2 Influences on Business N5 Business Management
- 3. Stakeholders Stakeholders are people with a key interest in a business The main ones in business are: •Owners/Shareholders •Customers •Managers •Government •Employees •Community
- 5. Owners and Shareholders • The number of owners and the roles they carry out differ according to the size of the firm • In small businesses there may be only one owner (sole trader) or perhaps a small number of partners (partnership) • In large firms there are often thousands of shareholders, who each own a small part of the business
- 6. Managers Organise Make decisions Hire and fire Plan ahead Command & control Accountable to the owner(s)
- 7. Employees A business needs staff or employees to carry out its activities Employees agree to work a certain number of hours in return for a wage or salary Pay levels vary with skills, qualifications, age, location, types of work and industry and other factors
- 8. Customers • • • Customers buy the goods or services produced by firms They may be individuals or other businesses Firms must understand and meet the needs of their customers, otherwise they will fail to make a profit or, indeed, survive
- 9. Suppliers Firms get the resources they need to produce goods and services from suppliers Businesses should have effective relationships with their suppliers in order to get quality resources at reasonable prices This is a two-way process, as suppliers depend on the firms they supply
- 10. Community Firms and the communities they exist in are also in a two-way relationship The local community may often provide many of the firm’s staff and customers The business often supplies goods and services vital to the local area But at times the community can feel aggrieved by some aspects of what a firm does
- 11. Government • Economic policies affect firms’ costs (through taxation and interest rates) • Legislation regulates what business can do in areas such as the environment and occupational safety and health • Successful firms are good for governments as they create wealth and employment
- 12. TASK Question Bank 1-10 Debate The school is to be knocked down and a new hospital is to be built here. Pupils will relocate to Blantyre. You will be assigned different Stakeholder roles to debate this for/against whether it is good for the town.
- 14. TASK Question Bank 11-21 In Groups Create a charter (set of rules) for working conditions that you agree are acceptable for people aged 16-18.
- 16. Political Factors Legislation Tax Trade barriers & Tariffs
- 17. Economic Factors Inflation Unemployment State of Economy (Boom v Recession) Exchange Rates
- 18. TASK Question Bank 22-36 Go Further Find 5 laws in the UK that affect a business and say why. Go Further What does GDP mean? How is it calculated? What is the Exchange Rate?
- 19. Social Factors Demographic changes Tastes & Trends
- 20. Technological Factors Communication & Connectivity Smart phones & Tablets Automation
- 21. Technology (EXTERNAL) Some Recent Technological Innovations: Google’s Driverless Cars China’s 3D Express Coach Indoor Clouds 3D Printers Google’s Project Glass Apple TV Asimo Electric Cars
- 22. TASK Question Bank 37-43 Go Further Polish is now the 2nd most spoken language in the UK. What products would you target to the Poles?
- 23. Environmental Factors Bad or unseasonal weather Extreme weather Natural disasters Recycling Green issues
- 24. Competitive Factors New products/services Price wars Aggressive advertising BOGOF Sponsorship Better customer service
- 25. TASK Question Bank 44-54 Go Further Who are the G8? What is the Earth Summit? What is the Kyoto Agreement? Go Further What is a Price War? What is a Loss Leader? What are the features of the Copyright, Designs & Patents Act
- 26. ICT Presentation Prepare a revision presentation on External Environmental Factors (PESTEC) Include a Title Slide Political Factors Economic Factors Social Factors Technological Factors Environmental Factors Competitive Factors