EXTERNAL ENVIRONMENT

Chapter 5

PPEESSTTPEST is an acronym standing for political,

economic, social and technological factors that affect how a business operates.

PEST worksheet

Which P E S T ?

How did it affect businesses?

Which P E S T ?How has it affected

the business?

Which P E S T ?

How has it affected the business?

Which P E S T ?

How has it affected the business?

Prepare a PEST analysis for H&M as they move to Thailand [12]

Political – advantages / disadvantagesEconomical - advantages / disadvantagesSocial - advantages / disadvantagesTechnological - advantages / disadvantages (chip & pin)

Social & cultural influences.

More people are living by themselves and staying single for longer, how has this affected businesses?

Activity 5.5•Identify two changes to the structure of the labour workforce forecast over this period. How do these changes affect HR in a business.

How has the UK baby boom affected businesses?

Revision ActivityThe Chinese government is becoming increasingly concerned about

higher rates of inflation. Rising oil and petrol prices has increased costs

to industry and businesses are forced to raised prices to cover these

higher costs. In addition, rising demand for imported food in an

increasingly wealthier population has led to an excess demand,

resulting in the People’s Bank of China increasing interest rates. This is

the third increase in less than a year. China is now more prepared to

use the monetary policy to manipulate the economy. In 2007, China’s

GDP increased by 10%, this exponential rate is unsustainable.

1.State two reasons for the increase in inflation [2]2.Are these causes push or demand pull pressures? [4]3.Explain how the monetary policy can manipulate the economy [12]