External business environment - current issues

Question 1

PESTEC and examples - part 1

Answer 1

PES
- political - economic policy, health and safety
- economic - recession or boom
- social - trends such as loom bands

Question 2

PESTEC and examples - part 2

Answer 2

TEC
- technological - automation, ICT
- environmental - climate change, weather
- competition - price wars, imitators

Question 3

Impact of current issues on whole organisation

Answer 3

• change in social trends impacts demand for products
• change in weather increases demand

Question 4

Impact of current issues on marketing

Answer 4

• change in imitating competition might force a business to try and differentiate their brand more through marketing
• tailor marketing to changing social trends

Question 5

Impact of current issues on finance

Answer 5

• change in corporation tax effects profit for the year
• change in economic boom increased sales

Question 6

Impact of current issues on operations

Answer 6

• change in health and safety legislation means there must be a change in how products produced
• change in technology can increase automation in production