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8. pestec examples pupil handout

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8. pestec examples pupil handout

  1. 1. 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
  2. 2. 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
  3. 3. 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
  4. 4. 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
  5. 5. Environmental Factors • Pressure groups • Climate change and pollution • Media attention on ‘bad business behaviour’ • Social Responsibility objectives e.g. Co-op Fair Trade
  6. 6. 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)

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