UB - External Factors

Question 1

What are external factors (PESTEC) ?

Answer 1

Political
Economic
Social
Techological
Enviromental
Competitive

Question 2

What is involved in the POLITICAL factors in external factors ?

Answer 2

Involves decisions and laws the government make:
1. Tax
2. Laws
3. Political Stability
4. Planning Permission

Question 3

What is involved in the ECONOMIC factor in the external factor ?

Answer 3

Recessions
Unemployment
Intrest Rates
Exchange Rates

Question 4

What is involved in the SOCIAL factor in the external factor ?

Answer 4

Social influences are concerned with changing opinions, values and beliefs. these affects habits and spending of customers:
Demographics
Lifestyles
Taste and Trends

Question 5

What is involved in the TECHOLOGICAL factor in external factor ?

Answer 5

The way new development in practise and equipment affects a business:
Research & development
Automation
E-Commerce
ICT

Question 6

What is involved in the ENVIROMENTAL factor in the external factor ?

Answer 6

Climate Change
Weather
Increasing use of recycling
Decrease in pollution

Question 7

What is involved in the COMPETITIVE factor in the External factor ?

Answer 7

A competitor is another business who offer the same or simular product or service :

May:
Lower prices
Locate near you
Offer better qualities

May respond with:
Lowering prices
open for longer
Promotions
New loaction