Impacts of external influences

Question 1

What does pestle stand for?

Answer 1

P- political
E- economic
S- social
T- technological
L- legal
E- environment

Question 2

How does economic factors influence a business?

Answer 2

• falling unemployment help increase demand for products
• Stable prices can encourage a business to invest further
  -in a recession those with income elastic suffer

Question 3

How does social impact business?

Answer 3

-ageing population= demand for some products increase
-increase migration increase work force size
-social media allows businesses to communicate with customers

Question 4

How has technology impacted a business?

Answer 4

• can shorted a products life cycle
• can replace people with machinery so decreases costs
• development in social media increased feedback to business

Question 5

How can legal affect businesses?

Answer 5

• can affect tax laws

Question 6

How can the environment affect a business?

Answer 6

-more recycling which can cut businesses costs
- people more inclined to buy green products so can increase business costs

Question 7

What are Porters five forces?

Answer 7

-bargaining power of suppliers
-bargaining power of buyers
-threat of new entrants
-substitutes
-rivalry among existing firms