Buscar
Estás en modo de exploración. debe iniciar sesión para usar MEMORY

   Inicia sesión para empezar

level: External Factors

Questions and Answers List

level questions: External Factors

QuestionAnswer
Give 3 examples of government policiesincreasing 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 factorsPolitical 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 WageA 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 policyA 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 factorschanging 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 weatherunexpected changes in weather patterns eg heavy snow, flooding, high winds
what is meant by pressure from government/societygovernment 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 factorscompetitors: 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