Flashcards
IB Business Management 1.5
Cards in this deck (24)
- 1Social STEEPLE factorpopulation size and structure (aging population, life expectancy), role of women, lifestyle (retirement), age groups, immigration and education levels
- 2Technological STEEPLE factorFactors include the state of technological advancement and introduction of new technologies
- 3Economic STEEPLE factorFactors such as the GDP growth rate, inflation rates, interest rates, exchange rates
- 4Political STEEPLE factortype of government, its attitude to free markets, imposition of tariffs, business incentives offered and the stability of the government
- 5Legal STEEPLE factorany law influencing business activity, e.g. competition, law, health and safety at work, consumer protection, employee protection
- 6Ethics STEEPLE factorgeneral code of ethics followed by most people in the country, and the tendency of people to be ethical
- 7economic growthincreases in the level of a country's gross domestic product or GDP (total value of output)
- 8recession6 months (two quarters) of falling GDP (negative growth)
- 9exchange ratevalue of one currency in terms of another currency
- 10Technological impact on objectives and strategies- reduce product development time, speed up manufacturing
-improving stakeholder communication
- developing new and better processes
-cost benefits
-outsourcing and offshoring - 11computer-aided design (CAD)using computers and IT when designing products
- 12computer-aided manufacturing (CAM)the use of computers and computer-controlled machinery to speed up the production process and make it more flexible
- 13Fiscal policyChanges in government spending levels and tax rates
- 14Inflationthe rate of change of the average level of prices
- 15cost-push inflationcaused by rising costs forcing businesses to increase prices
- 16demand-pull inflationcaused by an excess demand in an economy, e.g. an economic boom, allowing businesses to raise prices
- 17Impact of economic growth and recession on business objectives and strategiesEconomic growth: increase demand for goods and services as consumers have higher incomes, inferior goods may be rejected
Recession: business retrenchment, closures and redundancies, cheaper inferior goods will benefit
- business flexibility is important for survival - 18Interest rates on business objectives and strategies- increase in interest rates will reduce customer demand for products bought on credit (e.g. houses and cars)
- increase loan capital will reduce profits for a business with high debt
-business expansion plans delayed or cancelled - 19Exchange rates- decreases (depreciation) in the value of a currency value against other currencies- imported goods more expensive CONS: more expensive to import capital goods for production PROS: domestic products become more competitive overseas
-try to buy domestic supplies
-businesses might target foreign markets more - 20Exchange rates- increases (appreciation) in the value of a currency value against other currencies- imported goods cheaper PROS: cheaper to use imported capital goods in production process CONS: imported goods become more price competitive against domestically produced products
- exported products less competitive - 21Tax changes through the use of fiscal policy on business objectives and strategies-higher rates of income tax reduce consumers' disposable income, demand for luxury products will fall
-higher corporation tax reduces the profits of tax of companies, might relocate to another country - 22Unemployment effect on business strategies and objectives- give more choices in employee recruitment
-wages may reduce or not increase in line with inflation
-average consumer incomes are likely to fall - 23Inflation (cost-push) on business strategies and objectives-higher wage demands from workers to maintain real incomes during inflation and
- if businesses do not want to increase price,
profit margins may fall
-seek cheaper sources of supply or more efficient methods to decrease costs per unit - 24Inflation (demand-pull)-encourage firms to raise prices to increase profit margins
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- Flashcards on IB Business Management 1.5, created by One Fish Two Fish on 19/01/2020.
- Created by
- One Fish Two Fish · Jan 2020
- Updated
- Jan 19, 2020
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