PESTEC

Question 1

What does PESTEC stand for

Answer 1

Political
Economic
Socio- Cultural
Technology
Environmental
Competition

Question 2

What does a Law do

Answer 2

Makes a business change its policies

Question 3

What are examples of laws

Answer 3

Minimum wage act
Equality act
health and safety at work act

Question 4

What are the 2 parts of the Political part of PESTEC

Answer 4

Laws
Taxes

Question 5

What are taxes?

Answer 5

The percentage of profit given to the government to fund public sector services e.g. NHS, Schools, Fire brigade

Question 6

What is disposable income?

Answer 6

Money left to spend after tax

Question 7

What are the 3 parts of the Economic part of PESTEC

Answer 7

Interest Rates
Exchange Rates
Unemployment

Question 8

What are interest rates?

Answer 8

The percentage added to loans when repaid and the percentage added to money when it is saved

Question 9

What are exchange rates?

Answer 9

The cost of buying a foreign currency

Question 10

What is unemployment

Answer 10

The number of citizens unemployed

Question 11

What happens if there is a high amount of citizens unemployed?

Answer 11

There is more choice during selection, You can pay lower wages which equals a higher profit, more competition for jobs

Question 12

What happens if there is a low amount of citizens unemployed?

Answer 12

Less choice during selection, you will have to pay higher wages which equals less profit, less competition for jobs

Question 13

What are the 3 parts in the Socio-cultural part of PESTEC

Answer 13

Tastes and trends, culture and demographics

Question 14

What happens if a business is in trend?

Answer 14

higher demand, higher prices, higher profit, higher competition

Question 15

What happens if a business is out of trend?

Answer 15

Wasted stock, have to lower prices, product enters decline phase of product life cycle

Question 16

What happens if there is higher costs and lower profits?

Answer 16

The business needs to find a new product or service

Question 17

What are the benefits of a business adapting its products or services for traditions or beliefs?

Answer 17

You can charge higher prices, you get high profits.

Question 18

What is demographics?

Answer 18

The ways to categorise different groups in a geographical area.

Question 19

What do demographics help to identify

Answer 19

Products/services, prices, promotion, places (stores, markets, online etc.)

Question 20

What are examples of demographic groups and give product examples?

Answer 20

Gender - Clothes, sanitary products, hair tools
Age - Children toys, alcohol, baby food
Employment status - job centres, charity shops, food banks

Question 21

What are the 4 parts in the Technology part of PESTEC

Answer 21

Research and development, automation, ICT, E-Commerce

Question 22

What are the benefits of ICT

Answer 22

It allows for virtual meeting making it easier to work internationally and easier to communicate with suppliers and customers.

Question 23

What are the benefits of E-Commerce?

Answer 23

It allows for 24/7 business, huge potential worldwide market, no need for potential premises or lots of staff, practically limitless “shelf space”

Question 24

What is a negative of E-Commerce?

Answer 24

the business may lose employees, there will be lower employee motivation when functions are automated, it is expensive to set up and maintain

Question 25

What are the 2 parts in the Environmental part of PESTEC

Answer 25

Weather and Protest groups

Question 26

What is a negative of weather and give a solution?

Answer 26

Temperature, rain and snow can delay growth or spoil crops SOLUTION: poly tunnels

Question 27

What are negatives of protest groups and try give a solution?

Answer 27

it stops production, lower public opinions, and block applications. SOLUTION: compromise, get involved in local community and local sponsorship.

Question 28

What are the 4P’s?

Answer 28

Product, Price, Place, Promotion

Question 29

What is a negative of competition?

Answer 29

Changes in any of the 4P’s by a competitor can make customers leave or buy less

Question 30

What is a solution for changes in any 4P’s?

Answer 30

Achieve the same as competition(BENCHMARK)
Become better than competition