Edexcel Business A Level Revision

Cultural/social factors - are the lifestyle, customs and values of a group of people. It is important for a business to recognise these factors when targeting markets. Without an insight and understanding it is likely that a business will fail to establish a significant presence in the market. It is essential that a business understand the requirements of the target market, whilst at the same time ensuring that it does not use inappropriate marketing, very likely innocently, to upset them. Cultural and social factors include the following; Cultural differences Different tastes Language Unintended meanings Inappropriate/inaccurate translations Innappropriate branding and promotion. Cultural differences occur because different types of people have different lifestyles, customs and values. For example, in India a handshake for a business meeting is considered critical, though Indian women are not supposed to shake hands with men. Any drink such as tea must be accepted as a ...

PESTLE - is a method used to analyse external influences on a business, in particular Political, Economic, Social, Technological, Legal and Environmental influences. External environment - is all of those factors outside of their control of a business that will impact on its day to day operations, decision making and strategies. Fiscal Policy - They ways the government can adjust spending and taxation to influence the national economy Monetary policy - The ways the government, via the Bank of England, can alter how much money is circulating in the economy and the level of interest rates to create stable prices and a set inflation target. PESTLE can be used by a business to make the most of factors that are seen as beneficial and minimise the impact of factors that have a negative impact. The advantage of PESTLE is that like SWOT it can help identify area of opportunity and threat. A disadvantage is that time and money need to be spent gathering data to perform the analysis. Un...

Business ethics - The moral principles that guide the way a business behaves. Corporate Social Responsibility - A business's initiatives regarding the community and environment and willingness to take responsibility for the effects the company's actions have on environmental and social issues and the impact on a range of stakeholders. Pressure groups - A group that tries to influence company policy in the interest of a particular cause. CSR is based on the concept that society needs business to employ staff, make investment and raise taxes from profits and the business needs society to create demand, to use public infrastructure, such as roads and power, and for legal protection. THE SHAREHOLDER CONCEPT Not all business organisations operate in a socially responsible manner. Some argue that it is not the job of businesses to be concerned about social issues and problems. The shareholder concept is closely associated with the writing of US economist Milton Friedman...

Hierarchy of needs - focuses on the psychological needs of employees. Maslow put forward a theory that there are five levels in a hierarchy of human needs that employees need to have fulfilled at work in order for employees to feel motivated . Self-actualisation - Fulfilling potential, being able to develop and be creative Self-esteem - Gaining respect and recognition for achievements, feeling competent Social needs - Communicating with colleagues, friendship, team-working and trust Safety needs - A safe working environment and job security Physical needs - Having enough money for the essentials. Being paid wages that enable employees to pay the bills. Maslow's pyramid starts at the base with the need for money to pay for essentials such as food and a home. Once the most basic needs are met, good working conditions become important. As each need is fulfilled, the employee moves up the pyramid to higher needs. CRITICISMS OF MASLOW'S THEORY Some jobs are ver...