UB part two Flashcards
(30 cards)
What is an internal factor
Influences within the control of the organisation which will affect how it operates
Three internal factors
Availability of finance
Human resources
Current technology
Availability of finance definition
The amount of money a business has available
Human resources definition
The ability / skills of employees / management within the organisation
Current technology definition
The technology that an organisation currently has available to use
What are external factors ( PESTEC )
Influences outwith the control of the organisation which will affect how it operates
Six external factors
Political
Economic
Social
Technology
Environmental
Competitive
Political (external)
Changes in government policies, legislation and taxes
What are some legislation (political)
National minimum wage act
National living wage
Equality act
Health and safety act
GDPR
What are some taxes (political)
Corporation tax
Income tax
VAT
What are some policies (political)
Increase spending on schools
Set environmental limits
Build new roads
Economic (external)
Factors which encourage people send to save their money
Five economic factors
Unemployment
Recession
Inflation
Interest rates
Exchange rates
Unemployment
In economic
People of working age who are not currently employed but are actively seeking employment
Recession
In economic
A period of economic decline when trading slows and income decrease
Inflation
In economic
An overall increase in prices for goods and services
Interest rates
In economic
The percentage amount set by Bank of England as a minimum to be charged when borrowing money
Exchange rates
In economic
The value of one currency against another
Social (external)
Changes in demographics, characteristics of the population, culture and values
Examples of social changes
- Continually changing trends in fashion
- Changes in good tastes like vegan
- Customers becoming more conscious of environmental and ethical issues
- Changing in work life balance
- Uk’s ageing population
Technological (external)
Advancements in technology happening in an organisation’s industry
Examples of technological developments
- Increased use of social media
- Increased use of apps
- Increased use of robots
Environmental (external)
Pressure from the government / society to be more environmentally friendly and the influence of adverse weather
Two environmental factors
PRESSURE FROM GOVERNMENT
- Pressure from society to be more environmentally friendly
- Government may set environmental targets for businesses
ADVERSE WEATHER
Unexpected changes in weather patterns
