| Give 3 examples of government policies | increasing spending on schools
setting new environmental limits
building new roads |
| what is an external factor? | a factor out with the control of the organisation which affects how it operates |
| What acronym can be used to memorise the external factors? | PESTEC |
| What are the 6 external factors | Political
Economic
Social
Technological
Environmental
Competitive |
| What is a political factor? | Change in government policies, legislation or taxes |
| What 5 pieces of legislation affect a business?
(Political Factor) | National Minimum Wage Act
National Living Wage
Equality Act
Health and Safety at Work Act (HASAWA)
GDPR |
| What 3 taxes affect how a business runs?
(Political Factor) | Corporation Tax
Income Tax
VAT |
| Name Government Policies that might affect a business?
(Political Factor) | Increasing spending on schools
Setting new environmental limits
Building new roads |
| What is the National Minimum Wage Act? | A law which tells a business the minimum amount they can pay employees of a certain age. |
| What is National Living Wage | A law which tells a business the minimum amount they can pay an employee over the age of 23 |
| What is the Equality Act? | A law which stops a business from discriminating against certain employees and customers. |
| What is the Health and Safety at Work Act? | law which states employees and employers have responsibilities to keep the workplace safe |
| What does GDPR stand for? | General Data Protection Regulation |
| What is GDPR? | law which states businesses must store data securely, it must be accurate and should be held no longer than necessary |
| Who pays corporation tax? | UK Businesses |
| Who pays income tax? | Anyone who earns an income (over £12,750) |
| Who pays VAT? | Everyone who buys something that isn't a necessity |
| Where do taxes go to once paid? | the government |
| What is a government policy | A decision made by the government to enhance a community |
| What is an economic factor? | Factor which encourage people to spend or save their money |
| What are the 5 economic factors? | Unemployment
Recession
Inflation
Interest Rates
Exchange Rates |
| What is unemployment? | People of working age who are not currently employed but are actively seeking employment |
| What is recession? | A period of economic decline when trading slows and incomes decrease |
| What is inflation? | An overall increase in prices for goods and services |
| What are interest rates? | The percentage amount set by the Bank of England as a minimum to be charged when borrowing money |
| What are exchange rates? | The value of one currency against another |
| What is a social factor? | Changes in demographics, characteristics of the population, culture and values |
| Give some examples of social factors | changing fashion trends
changing food tastes
changing work-life balance
ageing uk population
rise of social media
mental health awareness |
| What are technological factors? | advancements in technology happening in an organisation's industry
(not referring to technology currently available within an organisation) |
| What are some examples of technological factors? | increased use of e-commerce/social media
increased use of cloud computing
increased use of tablets and smartphones
increased use of robotics for production |
| What are environmental factors? | pressure from government/society to be more environmentally friendly and the influence of adverse weather |
| what is meant by adverse weather | unexpected changes in weather patterns
eg heavy snow, flooding, high winds |
| what is meant by pressure from government/society | government may set environmental targets for businesses to achieve
pressure from society to be more environmentally friendly |
| What are competitive factors? | The actions of your competitors that will affect your business |
| Give some examples of competitive factors | competitors:
lowering their prices
launching new product/service
launching new marketing campaign
expanding to new locations
investing in new technology
forming new partnership with charities/initiatives |
