Influences on business
What's covered
Key facts
Competitive environment
Brand loyalty reduces the impact of competition — loyal customers stay with the brand even when rivals offer alternatives.
Consumer law
A consumer has 30 days to reject faulty goods for a full refund under the Consumer Rights Act 2015 — the short-term right to reject.
Elkington's triple bottom line model
Applying the triple bottom line to an entrepreneurial opportunity means judging its effect on people and the community, on the natural environment, and on profit — not just whether it makes money.
Ethical and environmental considerations
A formal code of conduct sets out the values and standards staff must follow — internal ethical framework, often signed at induction.
Globalisation
A benefit of globalisation for UK consumers is a wider choice of goods at lower prices — more suppliers competing for the same customer.
Green and circular economy
A circular economy keeps materials in use for as long as possible, designing out waste so that products and materials circulate rather than becoming waste.
Legislation
Breaking employment law can lead to fines or claims at an employment tribunal — financial and reputational consequences.
Technology
Automation may reduce the number of low-skilled jobs in a business — repetitive tasks are often automatable.
The economic climate on businesses
The Bank of England sets the official interest rate to influence the wider economy — Bank Rate.
The impact of globalisation on businesses
After Brexit, UK firms face new customs checks when exporting to the EU — paperwork, rules-of-origin declarations, border delays.
Sample questions
A taste of the 118 questions in this topic, answers marked. Sign up to practise the full set with spaced repetition.
What does USP stand for in marketing?
- •undercut supplier pricing
- •unified sales platform
- ✓unique selling point
- •universal supply price
Under the Consumer Rights Act, goods sold must be of what quality?
- •Approved by an independent test laboratory weekly
- •Identical in every measurable physical respect
- ✓Satisfactory quality, fit for purpose, as described
- •The cheapest available across every UK retailer
What three areas does Elkington's triple bottom line measure a business against?
- •Cash, capital and credit
- ✓People, profit and planet
- •Price, product and promotion
- •Profit, growth and survival
Which is an example of ethical sourcing by a business?
- •Buying the cheapest goods regardless of origin
- •Choosing suppliers based purely on speed alone
- •Ignoring working conditions in factories abroad
- ✓Paying fair wages to overseas suppliers
Which is a tariff?
- •A limit on the number of imports
- •A subsidy paid to local farmers
- ✓A tax on imported goods
- •An export grant from government
What best describes a circular economy?
- •Extracting resources to make single-use products
- ✓Keeping materials in use and designing out waste
- •Maximising output regardless of waste created
- •Selling goods as cheaply as possible overseas
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