PEST

Question 1

p stands for

Answer 1

political

Question 2

political

Answer 2

• Any decision that the government imposes on you
• Protects consumers
• Supports, protects and regulates businesses

Question 3

elements of political

Answer 3

laws
regulations 
taxes 
International trade laws
political stability

Question 4

laws

Answer 4

gun laws, constraints on what businesses are allowed to do, to protect our money.
create barriers

Question 5

regulations

Answer 5

rules not laws. Ex- environmental

Question 6

taxes

Answer 6

o Higher business taxes= lower drive to do that business
o Environment tax breaks if effort is made to protect environment
o Tax breaks for those companies starting in developing communities

Question 7

international trade laws and trade agreements

Answer 7

o laws in a foreign market
 Competition gets more competitive if other companies can sell without duty, but can be reversed where you don’t sell with duty but everyone else does (competition)

Question 8

political factors impact on business

Answer 8

expansion
barriers
competition

Question 9

expansion

Answer 9

lower duties means expansion opportunities

Question 10

barriers

Answer 10

lower barriers for US to enter Canadian markets

laws and regulations

Question 11

competition

Answer 11

when the US enters canadian market there is more competition domestically

Question 12

element changes impact on business

Answer 12

• Political favour/disfavour
• Government influence
• Government attitudes
• New laws all affect businesses ability to operate

Question 13

E stand for

Answer 13

Economic

Question 14

factor of e

Answer 14

affects economic growth

Question 15

elements of e

Answer 15

GDP
inflation 
employment rates 
exchange rates 
interest

Question 16

Inflation

Answer 16

high inflation = high costs- reduced demand

affects the luxury product industry since they are not necessities

Question 17

employment rates

Answer 17

high unemployment= few consumers to buy your products

low unemployment =. less qualified workers available

Question 18

exchange rates

Answer 18

how much the Canadian dollar is work against other dollars internationally
raw materials from different countries, shipping can increase or decrease

Question 19

interest

Answer 19

increase = cost businesses more to borrow money

Question 20

factors impact on business

Answer 20

costs, demand, funding, competitive pricing

Question 21

cost

Answer 21

increased costs are do to an increase in inflation or interest rates

Question 22

demand

Answer 22

increased demand could be due to a weak Canadian dollar (for people in the us)

Question 23

funding

Answer 23

interest and access to funds

Question 24

competitive pricing

Answer 24

how much your competitors are selling their products for

Question 25

elements changes impact on business

Answer 25

change in interest rates- borrowing more expensive, harder to expand the business currency changes- affect importing and exporting

Question 26

what does the s represent

Answer 26

social

Question 27

factor

Answer 27

affects customer preferences, worker attitude, csr | effects what they value, expect/demand from the company

Question 28

elements

Answer 28

values, attitudes, customs, habits, demographics

Question 29

values

Answer 29

what we believe and how we do things

Question 30

attitudes

Answer 30

o Towards smoking, drinking, etc  changes in attitudes mean that businesses need to react

Question 31

customs

Answer 31

o Affects products sold based on customs o Canadian customs for Christmas o This affects customers and what they buy o This also affects employees- when they are off work

Question 32

habits

Answer 32

o Canada vs Europe when it comes to work habits | o They are more relaxed when it comes to time, meanwhile in Canada we are prompt

Question 33

demographics

Answer 33

gender, age groups, education levels

Question 34

factors impact on business

Answer 34

customers, employees, CSR

Question 35

customers

Answer 35

affects how they feel about the company (environment)

Question 36

CSR

Answer 36

corporate social responsibilities | o Affects the environment preferences, company reputation, consumption

Question 37

S relates to P

Answer 37

the S of PEST often reflects our laws because of who the people elect. The S influences the P.

Question 38

what does the T stand for

Answer 38

technology

Question 39

T elements

Answer 39

information technology, internet, materials and equipment

Question 40

information technology

Answer 40

o Affect information access | o Suppliers and companies can connect through tech

Question 41

internet

Answer 41

o quality of internet and access to internet | o Affects buying/selling and communication

Question 42

materials and equipment

Answer 42

advances in technology o Constantly new products  Changing the way tires are made  Moving to materials that make planes lighter- less gas consumption

Question 43

factors impact on business

Answer 43

* Technological changes and developments can pose as threats or opportunities * Streaming services were opportunities for production companies but threats for movie theaters * Affects what we produce and what it can do * Affects how we produce and sell

Question 44

element changes impact on business

Answer 44

barriers, innovation, strategy and r&d

Question 45

barriers

Answer 45

some companies are too big and you cannot compete with them | o trying to compete with amazon and their technology

Question 46

innovation

Answer 46

create new materials and equipment o New product all the time  things are getting outdated quicker o Ex- 3D printing

Question 47

R&D

Answer 47

research and development