3.1.3 Understanding that businesses operate within an external environment

Question 1

Political

Answer 1

-competition policy (CMA–> stop merges between large companies)
-exclusivity regulations
-government spending+tax policies
-business policy+incentives

Question 2

Economic

Answer 2

-interest rate
-consumer spending+income
-exchange rates
-economic growth (GDP)

Question 3

Social

Answer 3

-demographic change (e.g age groups, race, gender)
-impact of pressure groups
-consumers tastes+fashion
-changing lifestyles (healthy living e.g veganism/vegetarianism)
-social factors (UK birth rate/fertility rate, people living for longer, net migration)

Question 4

Laws

Answer 4

-trademark
-being ethical
-minimum wage (increase costs/living standard)
-equality act 2010 (stops discrimination)
-red tape laws (Brexit)
-health and safety
-environmental legislation

Question 5

Environmental

Answer 5

-sustainability
-ethical sourcing (supply chain)
-tax practises
-pollution/carbon emissions

Question 6

GDP (Gross Domestic Product)

Answer 6

-measure of the value of output in the economy
-value used to assess changes in economic growth
-recession –> GDP fallen
-boom –> GDP risen

Question 7

Demand

Answer 7

-how much of a good or service a customer wants to pay for