5.1 The external environment and PESTEL analysis

Question 1

Examples of political factors:

Answer 1

• Competition

- Consumer protection

Question 2

Examples of economic factors:

Answer 2

• Interest rates
• Inflation rates
• Competition
• Housing market

Question 3

Examples of social factors:

Answer 3

• Changing lifestyles
• Unemployment rates
• Demographic trends

Question 4

Examples of technological factors:

Answer 4

• New delivery methods

- New products

Question 5

Examples of environmental factors:

Answer 5

• Sustainability

- Green investment

Question 6

Examples of legal factors:

Answer 6

• Legislation

- Regulation

Question 7

Extent to which PESTEL factors affect a provider depends on:

Answer 7

• The way in which the provider operates
• Performance
• Market position
• Whether all of the stakeholder groups are to be able to achieve their objectives