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1.5 Understanding external influences on a business, Consumer Protection…

- - - - Government
      - Owners
      - Employees
      - Managers
      - Local communities
  - - - Want to maximise profits and dividends.
        
        Want the value of their shares to increase.
    - - Want good pay and job security.
      - Want safe working conditions and fair treatment.
    - - Want the business to meet its objectives.
      - Want to increase profits by improving efficiency.
    - - Want to be paid on time.
      - Want long-term contracts and regular orders.
    - - Want high-quality products at a fair price.
      - Want good customer service.
    - - Want businesses to support their cause.
      - Want businesses to act ethically and responsibly.
    - - Want the business to create local jobs.
      - Want the business to protect the environment and support the community.
    - - Wants businesses to obey the law.
      - Wants businesses to pay taxes and help the economy.
  - - - Shareholders – Profits increase dividends; losses reduce share value.
        
        Customers – Affected by product quality, price, and availability.
        
        Local community – Gains jobs but may suffer from pollution or traffic.
        
        Government – Receives tax revenue and expects businesses to follow laws.
  - - - Shareholders – Provide investment and expect good returns.
        
        Customers – Influence products and prices through buying decisions.
        
        Local community – Can support or oppose business activities.
        
        Government – Affects businesses through taxes, laws, and subsidies.
- - - - Buying and selling products online.
      - Helps businesses reach more customers and reduce costs.
    - - Used to advertise products and communicate with customers.
      - Increases brand awareness and customer engagement.
    - - Includes email, video calls, and messaging.
      - Makes communication faster, easier, and cheaper.
    - - Includes contactless cards, Apple Pay, and online payments.
      - Makes paying quicker and more convenient for customers.
  - - - Increases sales by reaching more customers online.
      - Allows businesses to sell globally.
    - - Reduces costs by removing the need for physical shops.
      - Lowers overhead costs.
    - - Creates new ways to advertise products.
      - Makes online promotion and easier.
  - - - Increases sales through advertising and recommendations.
      - Builds customer relationships and loyalty.
    - - Cheaper than traditional advertising.
      - Reduces marketing costs.
    - - Improves brand awareness.
        
        Allows businesses to interact directly with customers.
  - - - Makes it easier to contact customers and secure sales.
      - Speeds up communication with customers.
    - - Cheaper than traditional communication methods.
      - Allows remote working, reducing office costs.
    - - Provides new communication channels (e.g. email).
      - Makes marketing more targeted and efficient.
- - - - Protect the health, safety, and wellbeing of employees and customers.
      - Reduce accidents and injuries at work.
    - - Safe equipment, hygiene, temperature, noise, and rest breaks.
      - Staff training and safe working procedures.
    - - Failure to comply can lead to fines or prosecution.
        
        Increases costs (training, equipment, safety measures).
- - - - The economy grows and businesses produce more.
      - More jobs and higher incomes are created.
      - Higher household incomes
        
        People have more disposable income.
        
        Consumers can afford to spend more.
        
        More spending on goods and services
        
        Demand for products increases.
        
        Businesses experience higher sales and profits.
        
        Rising inflation
        
        Higher demand pushes prices up.
        
        Business costs may also increase.
        
        Falling unemployment
        
        Businesses hire more workers to meet demand.
        
        More people earn wages, continuing the cycle.
  - - - Inferior goods → Demand and sales increase.
      - Normal goods & luxury goods → Demand and sales fall.
  - - - Workers demand higher wages.
      - Raw materials and utilities become more expensive.
    - - Interest rates often rise.
      - Borrowing becomes more expensive.
    - - Consumers buy fewer luxury goods.
      - Consumers spend more on necessities.