3.1.4 impact of external influences

Question 1

What is a pestle analysis?

Answer 1

A business analysis tool that aims to look at external factors and how they may have an impact on a business - aids strategic and tactical decision making, objective setting and helps a business to reach its goals
- used alongside a swot analysis

Question 2

What is meant by political

Answer 2

A change in government policies
Influence on the EU trading
Tax rates
Tarrifs

Question 3

What is meant by economical?

Answer 3

Increase in interest rates
Increase in inflation
Unemployment rates
Recession
The business cycle

Question 4

What is meant by social ?

Answer 4

A change in demographic and its impact on products produced and the market
Social trends
Customer tastes and preferences changing

Question 5

What is meant by technological?

Answer 5

Automation, new robots and how it can improve productivity
Innovation in the industry
Research and development in the industry
New computer systems
Ai

Question 6

What is meant by legal?

Answer 6

Health and safety at work act 1974
Equality act 2010
Consumer rights act 2015
Data protection act 2018

Question 7

What is meant by environmental?

Answer 7

Climate change caused by farming and weather
Sustainable production and CSR
disappearance of wildlife

Question 8

What is a competitive market?

Answer 8

• a large number of buyers and sellers