Understanding Business 6) - PESTEC factors

PESTEC - factors impacting business which cannot be controlled 

Political/Legal pressures - Changes in local and national government and in the EU affect organisations. Govn is incharge of running public sector, which not only supplies services such as health and education, but is also a major buyer of goods and services provided by private firms, e.g. bandages. Firms will also be affected by changes in taxation and public sector spedning, as well as the govn policies. E.g in 1997 a law passed which banned cosmetic testing on animals which meant increased costs and new methods of research for firms who now have to find alternative ways to ensure saftey of their product.

Economic pressure - one factor which is compleatly out of the control of any organisation, is the state of the economy. The bank of england sets the rates for the UK, increase in interest rate will directly affect any organisation who has loans to repay, as amount borrowed will change. Lareg businesses who trade internationally have to deal with flactuation exchange rates between countries.

Social pressure -

Demogratic change - UK has a slow growing population, and an ageing one, average family size, has fallen to below 2. First time mother average is now 29, compaired to 24 a decade ago. Firms have to now 

- be more willing to accept older workers

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