Learning IntentionFactors affecting a business

Internal PressuresExternal Pressures – PESTEC

Homework

Homework Booklet

Page 3Questions 9, 10, 13 & 15 (a & b)

18 marks

Due Wednesday 31 August

Internal Pressures

Things within the business that impact upon the way it operates

• New personnel or management

• New technology (the internet)

• Change in financial position• New product developments• Company policy• Corporate Culture

External Pressures

Things outwith the businesses control that impact upon the way it operates• Political – legislation, planning, devolved Parliament• Economic – interest rates, exchange rates, the EURO• Social – ageing population, role of women, greater general

prosperity• Technological – email, internet• Environmental – pressure groups, climate change, social

responsibility• Competition – market competition, USPEasily remembered by using PESTEC

INTERNAL PRESSURES- New personnel- New technology

- Change in finances

Politica

l / legal

Economic

Social

Tech

nological

Competitive Environmental

EXTERNAL PRESSURES

PESTEC

External environment changes which can affect an organisation

Political Pressure

• 5 Sept 2007 : SNP moves to outlaw cheap alcohol deals • Supermarkets off-licence’s face being banned from offering cut-

price alcohol deals under new plans.• The minister wants to prevent supermarkets and off-sales from

promoting schemes which offer free alcohol, such as "three for the price of two" and "buy one get one free" offers.

• Stores will also face tough restrictions on how they promote drink, including separate display areas to make the distinction between alcoholic and soft drinks.

• The 2005 Licensing Act, due to come into force this year, outlaws irresponsible promotions in pubs and clubs, but only in some off-sales

Economic Factors

• Credit Crunch• Booms and slumps in the economy have been

reflected in the changes in consumer demandsBBC NEWS | England | Blackpool visitors down • Stock Market Mayhem• Varying Exchange Rateshttp://www.bbc.co.uk/learningzone/clips/effects-of-varying-exchange-rates/5828.html

Socio-Cultural Factors

• Working mothers• http://

www.bbc.co.uk/news/education-14247472 • Increasing numbers of working mums have

returned to the workplace, has impact on working practices

Technological Changes

• Internet Shoppinghttp://

www.moneyweek.com/investment-advice/high-street-suffers-as-online-sales-soar

• Reach more consumers as can be done 24/7 but has negative impact on high street shops

Environmental Factors

• Climate Change http://thescotsman.scotsman.com/scotland/Theres-no-snow-on-ski.3277507.jp• Lack of snow causes businesses to diversify

Competitive Factors

• HMV close Megastoreshttp://www.marketingweek.co.uk/sectors/retail/hmv-to-close-60-stores/3021963.article • Due to falling sales and profit levels aims to

reshape its business

Independent Study

External Business Environment

• Using the Leckie & Leckie books read pages 25-28

• In jotters take your own notes to help you describe each heading under P-E-S-T-E-C