8. pestec examples pupil handout
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Transcript of 8. pestec examples pupil handout
![Page 1: 8. pestec examples pupil handout](https://reader036.fdocuments.us/reader036/viewer/2022082402/55c3f23dbb61eb5d6a8b46b4/html5/thumbnails/1.jpg)
Political/Legal Factors
• Implementation of government policy and legislation in the UK, Scotland and locally e.g.
• Changes in EU funding • Directly affects public sector • Taxation affects all organisations• Smoking ban impact on pubs
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Economic Factors
• Unemployment levels / disposable income impacts sales
• State of the economy (boom or bust?)• Interest rate increases makes it dearer
for the organisation to borrow money• Exchange rate changes the cost of
importing and exporting – the stronger the pound, the harder it is to export UK goods to other countries
• Inflation (increases in general prices) can make raw materials/labour and transport costs much more expensive
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Socio-cultural Factors
• Demographic changes • Slow-growing, ageing population• Socio-cultural changes (lifestyle and
attitude changes) e.g. – increasing number of working mums– growth of car and home ownership– concern for environmental welfare– more leisure time
• Structure of labour market– increase in part time work– increase in tertiary sector jobs
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Technological Factors
• Rapid pace of change in Information Communication Technology costs money to keep up-to-date
• Need to keep up with competitors• Use of Internet to sell to customers and
buy from suppliers • Software improvements e.g. databases
for customer details • Greater use of computer-controlled
production processes to reduce costs
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Environmental Factors
• Pressure groups • Climate change and pollution• Media attention on ‘bad
business behaviour’• Social Responsibility objectives
e.g. Co-op Fair Trade
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Competitive Factors
• Need to constantly assess actions of competitors to protect sales and profits
• Desire to create and maintain a competitive edge over rivals
• Establish a Unique Selling Point (USP)