4. Impact of external influences Flashcards
1
Q
External influence
A
An external influence is any factor outside of the business that has an impact on normal trading
2
Q
PESTLE analysis
A
This is a business analysis tool that aims to look at external factors and how they may have an impact on the business
3
Q
PESTLE analysis
- use
A
This aids strategic and tactical decision making, objective setting and helps a business to reach its goals.
4
Q
PESTLE analysis
- name the parts
A
Political, Economic, Social, Technological, legal and environmental
5
Q
Porter’s five forces
- name them
A
- Bargaining power of suppliers
- Bargaining power of customers
- Threat of new entrants
- Threat of substitutes
- Rivalry among existing businesses
5
Q
Porter’s five forces
- what they determine
A
In 1985 Porter argued that there were 5 forces (or factors) which determine the profitability of an industry.
6
Q
A
7
Q
A
8
Q
A
