PESTE Flashcards
Political Legal environment
Politics and business do not exist in separation but they are interdependent on each other
VARIABLES
Legislation. There is large number of laws that businesses must comply with such as laws regarding protection pollution and environmental conservation
Regulations. It includes international trade agreements import control export promotion and regulated tariffs
Human rights. The Bill of Rights
Incentive schemes.
Economic environment
Economics includes the study of how human beings use resources to satisfy their multiple needs and wants
VARIABLES
The economic growth. Is depicted in the business cycle and refers to the expansion shf contraction of economic activities internationally and locally
Monetary policy. Money supply interest rates and exchange rate of the currency
Fiscal policy. Taxation and government spending
Inflation. Implies a rise in the general level of prices of products or services in an economy over time
Exchange rate. A country’s currency has two values and internal value and external value
Interest rates. Are largely determined by the supply and demand of money and the government policy in the specific country and are also influenced by events on international level
Productivity. Measures the output of production process as ratio of output
Consumer spending. Refers to the amount of money spent by households in an economy
Globalization and corporate social responsibility. Is process that refers to increased interdependence between national markets and industries on a worldwide scale. Corporate social responsibility means that businesses have responsibility that go beyond mere profit making and include voluntary activities and action that ffect people
Social demographic and cultural environment
People’s lifestyle plays n important role. It refers to the way they live and the choices they make in their personal lives as well as how they spend their money
VARIABLES
The changing family. Example are the changing roles of women in society and the increased career expectations of women
Changing lifestyle. Lifestyles are basically concerned with the way people live and how they spend their money
Crime.
Terrorism.
Work trends.
Demographic environment. It refers to the size age and gender distribution of the population and birth and death rates
Cultural environment. Cultural differences can be significant in terms of affecting the international business environment
Technological environment
Technology has to do with advanced n the way various products are designed and build
VARIABLES
Information and communication Technology ICT. Is used yo capture store and manipulate and retrieve data
Advanced manufacturing technology AMT. Can be seen as families of computer based technologies that are used in the manufacturing process
Supply chain management and justintime JIT.
Business use of the world wide web.
Ecological environment
Consists of the availability improvement and utilisation of the limited natural resources in a country and in the world with the emphasis on sustainability
VARIABLES
Raw materials. Organisations must scan the environment to identify potential risks and opportunities related to raw material availability quality supply chain disruption water scarity and mineral depletion can impact production and productivity
Renewable resources. By identifying opportunities to adopt renewable energy sources businesses can reduce their reliance on fossil fuel decrease energy cost
Pollution target. Through environmental scanning organizations can stay ahead pollution waste management and climate change which cam impact their competitiveness reputation and bottom line
Sustainability. By scanning the environment companies can identify emerging trends and shifts in consumer preferences related to sustainability eco-friendly products renewable energy
