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Business Management - NAT5 > PESTEC > Flashcards

PESTEC Flashcards

1
Q

What does PESTEC stand for

A

Political
Economic
Socio- Cultural
Technology
Environmental
Competition

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2
Q

What does a Law do

A

Makes a business change its policies

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3
Q

What are examples of laws

A

Minimum wage act
Equality act
health and safety at work act

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4
Q

What are the 2 parts of the Political part of PESTEC

A

Laws
Taxes

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5
Q

What are taxes?

A

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

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6
Q

What is disposable income?

A

Money left to spend after tax

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7
Q

What are the 3 parts of the Economic part of PESTEC

A

Interest Rates
Exchange Rates
Unemployment

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8
Q

What are interest rates?

A

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

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9
Q

What are exchange rates?

A

The cost of buying a foreign currency

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10
Q

What is unemployment

A

The number of citizens unemployed

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11
Q

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

A

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

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12
Q

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

A

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

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13
Q

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

A

Tastes and trends, culture and demographics

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14
Q

What happens if a business is in trend?

A

higher demand, higher prices, higher profit, higher competition

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15
Q

What happens if a business is out of trend?

A

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

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16
Q

What happens if there is higher costs and lower profits?

A

The business needs to find a new product or service

17
Q

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

A

You can charge higher prices, you get high profits.

18
Q

What is demographics?

A

The ways to categorise different groups in a geographical area.

19
Q

What do demographics help to identify

A

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

20
Q

What are examples of demographic groups and give product examples?

A

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

21
Q

What are the 4 parts in the Technology part of PESTEC

A

Research and development, automation, ICT, E-Commerce

22
Q

What are the benefits of ICT

A

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

23
Q

What are the benefits of E-Commerce?

A

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

24
Q

What is a negative of E-Commerce?

A

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

25
Q

What are the 2 parts in the Environmental part of PESTEC

A

Weather and Protest groups

26
Q

What is a negative of weather and give a solution?

A

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

27
Q

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

A

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

28
Q

What are the 4P’s?

A

Product, Price, Place, Promotion

29
Q

What is a negative of competition?

A

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

30
Q

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

A

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

Business Management - NAT5 (4 decks)

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