Technology & Business

Technology - E-commerce

Technology has changed how we buy products or services, as well as how businesses interact with customers. E-commerce has changed many aspects of business in recent years.

Selling online

E-commerce describes businesses selling their products and services to their customers over the internet.
In 1994 the first ever online shop was created. Today, huge online companies like Amazon, eBay and ASOS make almost all their sales online. Most businesses now have some online platform.
In 2018, e-commerce made up around 17% of overall retail spending in the UK and this was growing at a rate of 20% per year.

Bigger markets

E-commerce gives businesses the opportunity to sell products where they otherwise wouldn’t have been able to.
- Before e-commerce, nearly all shopping was done in store.
- Now it is possible for a small business to sell products to someone on the other side of the world.

More competition

Businesses are facing new competition from online businesses like Amazon (who were responsible for over 40% of all online sales in the US in 2016).
- Businesses have to adapt to the way customers are buying products by introducing websites of their own and therefore compete with companies like Amazon.

Technology - Digital Communication

The internet, along with other forms of digital communication are changing how firms interact with customers and other stakeholders. Some new methods of communicating with customers are:

Websites

Websites let customers shop but they also let customers interact with a business and learn about their products.
- Most companies have FAQs (frequently asked questions) and customer service (phone number or live chat) on their websites.
- Companies also publish reports for their shareholders on their websites.

Mobile apps

Mobile apps are a useful way to interact with customers as they can provide information about the business’ products, about where the business’ stores are located and can sometimes sell their products through an app.

Video conference calls

Video conference calls can allow employees and other stakeholders to hold meetings and have important conversations while in different countries.
Zoom and Skype are examples of video conferencing software that are used by consumers and businesses.

How Technology Changes Business Activity

Technology can influence business in a number of ways:

Sales

E-commerce, where firms sell their products online direct to customers and deliver it to customers, is rapidly growing.
Businesses can now easily sell their products to customers all over the world without setting up a physical store there.
New technology has also created new payment systems such as Apple pay and contactless payments.

Costs

Technology is providing new ways to keep costs as low as possible.
It is also much cheaper to set up a business that uses e-commerce. Firms don’t have to invest lots of money in opening stores and also do not have to spend as much money employing people to serve customers in retail stores.
- Amazon was started by Jeff Bezos. He initially sold books from his garage and the only investment that he had to make was in a website and some books, rather than leasing a store. Amazon is now worth over $700bn.

Production

Technology is also providing ways for firms to reduce production costs.
New, automated machinery is increasingly replacing humans in the workforce (e.g. robot arms are produced by companies like KUKA, to fix windscreens to cars at Jaguar Land Rover).
Technology is making it much easier for firms, particularly larger firms, to communicate within the firm and with stakeholders. This has important repercussions for the efficiency of business operations and can reduce average costs.

Marketing mix

Technological advances can lower average costs and prices for consumers.
Websites like Uswitch can let consumers compare prices at the click of a button.
More businesses can sell B2C. For example, VisionSpring now sell eyewear like this.
Products can become more innovative and promotions are often done via social media rather than using TV.

1Enterprise & Entrepreneurship

1.1The Dynamic Nature of Businesses

1.1.1The Dynamic Nature of Businesses

1.1.2Risk & Reward

1.1.3The Role of Business Enterprise

1.1.4The Role of Business Enterprise 2

1.1.5The Role of the Entrepreneur

1.1.6End of Topic Test - Dynamic Nature of Business

1.1.7Grade 9 - Dynamic Nature of Business

1.2Spotting a Business Opportunity

1.2.1Customer Needs

1.2.2Market Research

1.2.3Market Segmentation

1.2.4The Competitive Environment

1.2.5Primary & Secondary Market Research

1.2.6End of Topic Test - Business Opportunities

1.2.7Application Questions - Business Opportunities

1.2.8Exam-Style Questions - Market Segmentation

1.3Putting a Business Idea into Practice

1.3.1Business Aims

1.3.2Business Objectives

1.3.3Business Revenues & Costs

1.3.4Costs - Calculations

1.3.5Revenue - Calculations

1.3.6Business Profits & Break-Even Analysis

1.3.7Profits & Losses - Calculations

1.3.8Interest - Calculations

1.3.9Cash & Cash Flow

1.3.10Cash & Cash Flow 2

1.3.11Cash Flow - Calculations

1.3.12Sources of Business Finance

1.3.13End of Topic Test - Business in Practice

1.3.14Grade 9 - Business in Practice

1.3.15Exam-Style Questions - Business in Practice

1.4Making the Business Effective

1.4.1The Options for Start-Up & Small Businesses

1.4.2Limited Liability

1.4.3Franchising & Not-For-Profits

1.4.4Business Location

1.4.5The Marketing Mix

1.4.6Business Plans

1.4.7End of Topic Test - Effective Business

1.4.8Application Questions - Effective Business

1.4.9Exam-Style Questions - Business Plans

1.5Business Stakeholders

1.5.1Business Stakeholders

1.5.2Technology & Business

1.5.3Legislation & Business

1.5.4Legislation & Business 2

1.5.5The Economy & Business

1.5.6External Influences

1.5.7End of Topic Test - Business Stakeholders

1.5.8Grade 9 - Business Stakeholders

2Building a Business

2.1Growing the Business

2.1.1Business Growth

2.1.2Finance

2.1.3Changes in Business Aims & Globalisation

2.1.4Ethics & Business

2.1.5The Environment & Business

2.1.6End of Topic Test - Growing a Business

2.1.7Application Questions - Growing a Business

2.1.8Exam-Style Questions - Business Growth

2.2Making Marketing Decisions

2.2.1Product

2.2.2Product Life Cycle

2.2.3Price

2.2.4Pricing Methods

2.2.5End of Topic Test - Product & Price

2.2.6Grade 9 - Product & Price

2.2.7Promotion & Advertising

2.2.8PR & Sales Promotions

2.2.9Sponsorship & Product Placement

2.2.10Promotional Mix

2.2.11End of Topic Test - Promotion

2.2.12Application Questions - Promotion

2.2.13Exam-Style Questions - Promotional Mix

2.2.14Place & Wholesalers

2.2.15Direct to Consumer

2.2.16E-commerce & M-commerce

2.3Making Operational Decisions

2.3.1Job Production

2.3.2Batch & Flow Production

2.3.3Working with Suppliers

2.3.4Effective Supply Chains

2.3.5Just In Time & Just In Case

2.3.6Managing Quality

2.3.7Total Quality Management

2.3.8The Sales Process

2.3.9End of Topic Test - Operational Decisions

2.3.10Grade 9 - Operational Decisions

2.3.11Exam-Style Questions - Managing Stock

2.4Making Financial Decisions

2.4.1Gross Profit & Net Profit - Definitions

2.4.2Gross Profit - Calculations

2.4.3Net Profit - Calculations

2.4.4Rate of Return

2.4.5Rate of Return - Calculations

2.4.6Research & Financial Data

2.4.7Marketing Data

2.4.8Percentage Change - Calculations

2.5Making Human Resource Decisions

2.5.1Organisational Structures

2.5.2Organisational Structures 2

2.5.3Recruitment

2.5.4Effective Recruitment

2.5.5Training a Workforce

2.5.6Motivating a Workforce

2.5.7End of Topic Tests - Human Resources

2.5.8Application Questions - Human Resources

2.5.9Exam-Style Questions - Human Resources

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