Influences on business
What's covered
Key facts
Brand loyalty reduces the impact of competition — loyal customers stay with the brand even when rivals offer alternatives.
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.
A formal code of conduct sets out the values and standards staff must follow — internal ethical framework, often signed at induction.
A benefit of globalisation for UK consumers is a wider choice of goods at lower prices — more suppliers competing for the same customer.
Breaking employment law can lead to fines or claims at an employment tribunal — financial and reputational consequences.
Automation may reduce the number of low-skilled jobs in a business — repetitive tasks are often automatable.
The Bank of England sets the official interest rate to influence the wider economy — Bank Rate.
After Brexit, UK firms face new customs checks when exporting to the EU — paperwork, rules- of-origin declarations, border delays.
A business buying a registered patent gains exclusive use of that invention — bought patents can be licensed or kept.
A small independent café struggles against a chain like Costa because chains use economies of scale to lower unit costs and prices.
Sample questions
A taste of the 126 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
Which 2015 Act protects UK shoppers' rights when goods are faulty?
- •Competition and Markets Act
- ✓Consumer Rights Act
- •Sale of Goods Act
- •Trade Descriptions Act
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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