External/Internal Factors Flashcards
what are the PESTEC factors
political economic social technology environmental competitive
what are the political external factors
- changes in taxation: increase=less profits
- changes in govt funding: changes how taxes are distributed
- competition policy: illegal to fix prices with rivals
what are the economic external factors
economic conditions: businesses are influenced by the state of the UK economy and wether it is in boom or recession.
what are the social external factors
changes in demand
demographic changes: population changes affects the size of target market
what are the technology external factors
changes in materials and equipment: getting new tech early gives an advantage eg socials
what are the environmental external factors
- influence of pressure groups: by businesses collaborating with causes to help
- being ethical: recycling and reducing carbon footprint, promoting these things etc can help public eye
- natural phenomena-weather etc can effect transportation, crops etc
what are the competitive external factors
changes in the market: rivals in the same industry, greater competition is harder to overcome
what are the internal factors
staff, management, finance availability, technology, new product development
what is corporate culture
it is the set values and behaviours which all staff follow.
how is culture developed in an organisation
- recognition for work
- running training
- publishing articles in company mags
- uniform
- rites and rituals
- logos
- mottos
advantages of culture
- improves customer satisfaction
- customer loyalty as they associate with the cultures
- recognition
- motivates staff
- values can attract good staff
- often has an open door policy
