External Factors Flashcards
1
Q
What are the external factors?
A
Political, economic, social, technological, environmental and competitive (PESTEC)
2
Q
What are political external factors? (3)
A
Decisions made by the government, for example:
- Changes in legislation
- Changes to tax rates, e.g. VAT, income tax
- Alter levels of spending on public services
3
Q
What are economic external factors? (3)
A
The state of economy:
- Economic growth recession
- Currency exchange rate
- Changes in interest rates (cost of borrowing)
4
Q
What are social external factors? (3)
A
- Changes in population (demographics)
- Changes in society eg lifestyle changes
- Changes and tastes fashion
5
Q
What is the technological external factor?
A
Developments in IT, social media and computers machinery in production
6
Q
What are the environmental external factors? (2)
A
- Weather in natural disasters
- Pressure to be environmentally friendly e.g. recycling
7
Q
What is the competitive external factor?
A
Behaviour of competitors
