3.1.4 Impact of external influences

Question 1

What does PESTLE stand for?

Answer 1

Political
Economical
Social
Technological
Legal
Environmental

Question 2

What are Political factors?

Answer 2

Things like changes in policies, taxation or subsidies that can directly effect a business.

Question 3

What are Economical factors?

Answer 3

Things like changes in consumer spending, interest rates, exchange rates and economic growth

Question 4

What are Social factors?

Answer 4

When social trends effect demand, this includes change in population, migration and changes in tastes due to social trends.

Question 5

What are Technological factors?

Answer 5

When advancements in technology make opportunities for new products and services and create new or better ways to produce products.

Question 6

What are Legal factors?

Answer 6

Changes in the law have an impact on businesses and can change demand .

Question 7

What are Environmental factors?

Answer 7

Consumers have become more concerned about protecting the environment and this has caused businesses to produce their products in a more eco friendly way

Question 8

What are Porters 5 forces?

Answer 8

1. Competitive rivalry
2. bargaining power of suppliers
3. bargaining power of buyers
4. Threat of substitutes
5. Threat of new entrants