WEILAI Online Academic assistant
WEILAI Online Academic assistant
Back to 课程

Business AS AQA

0% Complete
0/0 Steps
  1. 1-1-the-nature-and-purpose-of-business as
    3 主题
  2. 1-2-forms-of-business as
    5 主题
  3. 1-3-the-external-environment as
    5 主题
  4. 2-1-management-and-leadership as
    3 主题
  5. 2-2-management-decision-making as
    4 主题
  6. 2-3-the-role-and-importance-of-stakeholders as
    3 主题
  7. 3-1-marketing-objectives as
    1 主题
  8. 3-2-understanding-markets-and-customers as
    5 主题
  9. 3-3-making-marketing-decisions as
    2 主题
  10. 3-4-the-marketing-mix as
    7 主题
  11. 4-1-operational-objectives as
    2 主题
  12. 4-2-operational-performance as
    1 主题
  13. 4-3-efficiency-and-productivity as
    3 主题
  14. 4-4-quality as
    1 主题
  15. 4-5-inventory-and-supply-chain-management as
    3 主题
  16. 5-1-financial-objectives as
    2 主题
  17. 5-2-financial-performance as
    6 主题
  18. 5-3-sources-of-finance as
    3 主题
  19. 5-4-cash-flow-and-profit as
    1 主题
  20. 6-1-human-resource-objectives as
    1 主题
  21. 6-2-human-resource-performance as
    1 主题
  22. 6-3-organisational-design as
    3 主题
  23. 6-4-human-resource-planning as
    4 主题
  24. 6-5-motivation as
    1 主题
  25. 6-6-improving-employer-employee-relations as
    2 主题
课 Progress
0% Complete

Exam code:7131

How environmental issues affect costs and demand

  • Environmental issues include climate goals, waste rules, extreme weather and nature protection

    • These factors shape how firms source, produce and deliver their products

    • They can raise costs through taxes, compliance or damage but also create new demand for green products and services

  • Some businesses use their environmental credentials in their marketing materials

    • For some, it is a key element of their unique selling proposition (USP)

      • Lush Cosmetics sells UK‑made, cruelty‑free bath products and solid soaps and shampoos that are sold “naked” (plastic‑free)

Key environmental issues

  1. Climate change targets and the move to net zero

    • UK law requires greenhouse‑gas emissions to fall to net zero by 2050

  2. Waste, plastics and the push towards a circular economy

    • The government imposes tax on non-recycled packaging

  3. Extreme weather linked to climate change

    • Serious storms cause £millions in damage, closing factories and shops in flood zones

    • The July 2022 heatwave cost the economy an estimated £260–300m through lost productivity

  4. Fast‑growing renewable energy sector

    • Renewable energy (e.g. wind, solar) makes up more than half of the UK’s total power demand

Environmental issues, costs and demand

Environmental issue

Impact on business costs

Impact on demand

Net-zero targets and carbon budgets

  • Up‑front spend on low‑carbon equipment (e.g. electric vans)

  • Large polluters have to buy permits for emissions or may face fines

  • Energy‑saving investments can cut fuel bills

  • Growth in home renewables such as solar panels and heat‑pump installations

  • Electric cars reached 19.6 % of UK new car sales in 2024

  • Falling demand for diesel cars, coal and oil‑fired heating

Waste, plastics and the circular economy

  • Packaging tax means firms using virgin plastic pay more

  • Cost of redesigning packaging or sourcing recycled pallets

  • Possible cost savings where businesses reduce or reuse materials or sell packaging-free products

  • Grants may be available to help switch to greener production

  • Higher sales of refill schemes (e.g. Body Shop) and packaging-free products such as solid shampoo bars

  • Lower demand for single‑use products such as plastic cutlery and straws as cafés switch to paper or wood

Extreme weather

  • Insurance premiums rise, e.g. Storm Babet caused £450–650m in damage

  • Heatwaves disrupt output and raise cooling bills

  • Extra spending may be needed for flood defences and business continuity planning

  • Growing demand for flood‑defence contractors, air‑conditioning installers and heat‑resistant building materials

  • Possible fall in outdoor leisure sales during prolonged heat or heavy rainfall

Expansion of renewable electricity

  • Businesses may have to pay higher fees to connect to the electricity grid and keep power flowing smoothly during renewable energy upgrades

  • Long‑run energy savings for firms using green power such as rooftop solar panels

  • Higher demand for solar panels, battery storage and heat pumps

  • Declining demand for coal and high‑carbon electricity

  • Businesses may be able to sell excess energy to earn extra revenue

The impact of fair trade on costs and demand

  • Fair trade is a trading system that guarantees farmers in poorer countries a minimum price plus a small premium for community projects

    • The Fairtrade organisation checks that working conditions meet agreed standards

    • Products that pass the audit carry the Fairtrade mark

Examples of Fairtrade products

A bouquet of colourful tulips, a bunch of organic bananas, a Colombian coffee jar, a box of Breakfast Blend tea and a Tony’s Chocolonely chocolate bar.
A selection of Fairtrade-accredited products, including flowers, chocolate, coffee, tea and bananas

The impact of Fairtrade on business costs

Impact on costs

Explanation

Example

Higher raw‑material prices

  • The Fairtrade Minimum Price adds pence per kilo to cocoa, coffee, bananas and sugar

  • Co‑op’s switch to 100 % Fairtrade cocoa increases ingredient costs

  • Nonetheless, it sends £450 ,000 a year in extra income to farmers in developing countries

Certification and audit fees

  • Firms pay to use the mark and undergo regular supply‑chain checks

  • Union Hand‑Roasted Coffee in London pays a Fairtrade licence fee on every bag it sells

  • It sets money aside each year to cover this extra cost

Price stability

  • The minimum price protects businesses from commodity price spikes, helping long‑term cost planning

  • UK chocolate maker Divine signs multi‑year cocoa contracts that stay above volatile world prices

Marketing savings

  • The Fairtrade label itself attracts ethical shoppers

  • Businesses may be able to spend less on “green” advertising

  • Waitrose highlights the Fairtrade logo on their own‑brand tea instead of running extra advertising campaigns

Complex logistics

  • Segregating Fairtrade from non‑Fairtrade stock may raise warehouse costs

  • Sainsburys keeps Fairtrade bananas on separate pallets to protect traceability

The impact of Fairtrade on demand

  • Fairtrade accreditation has a range of impacts on demand for some products

    • Ethical shoppers boost sales

      • Fairtrade Fortnight 2024 lifted confectionery sales by 41 % and hot‑drink sales by 12% compared to the previous fortnight

    • Increased shelf space for Fairtrade products

      • When a supermarket or other retailer promises to stock more Fairtrade goods, it gives those products more room in stores

      • With extra shelf space, shoppers see Fairtrade items more easily and sales often rise

      • For example, the Co‑op’s pledge to make all of its own‑brand chocolate Fairtrade means every chocolate bar slot in its stores now holds a Fairtrade product instead of only a few

    • Price‑sensitive customers may switch to cheaper brands

      • Some shoppers may avoid Fairtrade lines if they cost more than non‑certified or other ethical rivals

      • For example, several discount grocers stock Rainforest Alliance tea instead of Fairtrade, as it is less expensive to source and can be sold at a lower price

    • Broader product choice

      • Over 5,000 Fairtrade‑certified items are sold in UK stores, from flowers to cotton sports balls, giving consumers ethical options in many product areas

Responses

您的邮箱地址不会被公开。 必填项已用 * 标注