External Factors

Question 1

What are EXTERNAL Factors

Answer 1

key factors a business has no control over

Question 2

What are the EXTERNAL Factors referred to

Answer 2

PESTEC

Question 3

What are the EXTERNAL Factors

Answer 3

.political
.economic
.social
.technological 
.environmental
.competitive

Question 4

POLITICAL

Answer 4

decisions made by the government, for example:
.changes to laws- health and safety
.new legislation- smoking ban, minimum wage
.alterations to fiscal policies- changes to tax rates
.government targets- recycling

Question 5

ECONOMIC

Answer 5

anything that encourages/discourages people to buy due to the state of the economy
for example: Boom(increasing prices=increased profit) , Recession(take advantage of low credit rates), Recovery(sales increase as ore employment/ spending)

Question 6

What are the impacts of ECONOMIC POLICY on a business

Answer 6

1. FISCAL POLICY
   .increasing TAXs- customers have less money to spend
   .increasing VAT-selling price may be raised
   .increasing COROPORATION TAX- will reduce profit by year.
   2.MONETARY POLICY
   .increase/decrease interest rates

Question 7

SOCIAL

Answer 7

.the social factors are the ways in society changes and the need for businesses to adapt to suit
.it can involve changes in the demographics, characteristics or culture of a population as well as changes in what consumers buy when they buy it

Question 8

TECHNOLOGY

Answer 8

investing in new technology can give a business a competitive edge 
increased use of:
.social media 
.smartphones 
.e-commerce (website)
.order tracking 
.mobile pay(apple pay)

Question 9

What ways can Environmental factor arise

Answer 9

1. the ways in which the natural environmental impacts organisations
2. the ways that organisations can impact the environment by acting in an ethical and environmentally friendly way

Question 10

ENVIROMENTAL

Answer 10

environmental factors include:
.weather
.recycling
.pollution & carbon emission
.reduce packaging

Question 11

How can businesses compete with other businesses

Answer 11

.after prices charged to attract new customers
.bring out improved versions of products
.launch new marketing campaign
.introduce better customer service and support

Question 12

What are the impact competition has on businesses

Answer 12

.organisations cant participate in cartels
.the CMA can block any mergers likely to lead to any significant loss in competition
.consumers are protected from unfair practices such as hidden charges