External Factors

Question 1

What are the 6 external factors?

Answer 1

Political
Economic
Social
Technology
Enviromental
Competitive
(PESTEC)

Question 2

What are political factors?

Answer 2

-the government can introduce laws which could affect every business in the UK
-businesses must comply with laws or face heavy penalties
-e.g. increased min wage

Question 3

What are economic factors?

Answer 3

Economic influences refers to anything that encourages people to spend or not spend money

Question 4

What are social factors?

Answer 4

-concerned with fashions, tastes and trends
-changing population within the UK
-the increase of social media usage
-ethical customers who care about buying products that are recyclable or dont cause harm to animals

Question 5

What are technological factors?

Answer 5

-businesses must keep up to date with changes in technology
-social media is one of the most influential methods of advertising

Question 6

What are environmental factors?

Answer 6

-storms floods, pollution
-recycling and all other aspects prof environmental issues

Question 7

What are competitive factors?

Answer 7

-with increase of e-commerce, businesses are under threat from local competitors and global organisation
-creates more choice for customers
-cheaper prices
-higher quality and better offers