Teach-ICT OCR A2 ICT G063 Syllabus: The impact of external change

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THEORY

1. Introduction

2. Framing the changes

3. Types of change

4. Technology changes 1

5. Technology changes 2

6. Technology changes 3

7. Environmental changes

8. Legal changes

9. Working practices

10. Summary

8. Legal changes

Companies operate within the law. And so when a law changes, they need to respond

Consider

The introduction of the revised Data Protection Act in 1998. Companies had to upgrade their systems to be make access to personal data more secure. Robust backup systems and procedures were developed to reduce the chance of lost or corrupted data. Staff had receive extra training to ensure they did not divulge personal or confidential data by phone or email.
The WEEE Directive in 2007 (Waste Electrical and Electronic Equipment Directive) was introduced with the aim of reducing the amount of electrical and electronic equipment waste being produced and to encourage everyone to reuse, recycle and recover it. Companies now have to carefully consider how to get rid of their old and obsolete equipment. Retailers - If they are selling electronic equipment to the public, retailers will have to ensure that their customers can return their WEEE free of charge
Changes to the tax system. For example in the UK, VAT changed from 17.5% to 20%. All company accounting systems had to be changed for the new rate. Most software systems could deal with this fairly easily. But there were problems as many shops had products with the price already printed. They had no alternative but to discount the item to allow for the higher tax rate.
The 'Big Bang'. This refers to the deregulation of the London Stock Exchange in 1986. Share dealing became cheaper for the private investor because competition increased. Computerised share dealing replaced the old paper driven system. Companies are owned by their share holders and so de-regulation meant that it was easier for private individuals to own part of a company. To attract and retain shareholders many companies had to become more transparent in reporting their financial status and plans for the future. Employees could own part of their own company.

challenge see if you can find out one extra fact on this topic that we haven't already told you

Click on this link: The Data Protection Act