Understanding that businesses operate within an external environment

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PESTLE
Political, Economic, Social, Technological, Legal, Environmental
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Demand
The amount of a product (i.e. a good or a service) that consumers are willing and able to buy at any given price over a period of time
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Consumer goods
Goods purchased in order to satisfy the needs and wants of consumers, can be classified into consumer durables and non-durable consumer goods.
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Consumer durables
goods that are not instantly consumed but but are used over a period of time e.g. cars, television, computers, refrigerators, washing machines etc.
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Non-durable consumer goods
Goods that are consumed in the point of use, e.g. food products, washing up liquids, etc.
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Capital goods AKA investment goods
Items that are purchased by firms because they are used in the productions because they are used in the productions of other goods, e.g. tools and equipment,plant and machinery and buildings.
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Interest rates
The cost of borrowing money and the return for lending money
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Inflation
the rate at which the general level of prices for goods and services is rising and with a possible consequence, the purchasing power of currency is falling
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Disposable income
Income left for spending after taxes have been deducted from gross income
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Discretionary income
Disposable income less all the regular bills that must be paid, including rent, mortgage, bank loans, credit card payments, utilities, transport and food. It is therefore income available to spend on luxury or non-essential goods and services.
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Demographics
The characteristics of human populations and population groups; it includes analyses of a range of elements including migration trends , birth and death rates, trends in age, ethnicity and gender, level of education, marital status and size of family
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Liquidity
A measure of the extent to which a person or organization has cash to meet immediate and short-term obligations, or assets that can be quickly converted to do this. Read more: http://www.businessdictionary.com/definition/liquidity.html#ixzz3
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Administration
A rescue mechanism for businesses that become insolvent. This means they are able to continue trading, e.g. selling the business to new owners or separating the business into different elements that can be sold and closing those that cannot.
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Other cards in this set

Card 2

Front

The amount of a product (i.e. a good or a service) that consumers are willing and able to buy at any given price over a period of time

Back

Demand

Card 3

Front

Goods purchased in order to satisfy the needs and wants of consumers, can be classified into consumer durables and non-durable consumer goods.

Back

Preview of the back of card 3

Card 4

Front

goods that are not instantly consumed but but are used over a period of time e.g. cars, television, computers, refrigerators, washing machines etc.

Back

Preview of the back of card 4

Card 5

Front

Goods that are consumed in the point of use, e.g. food products, washing up liquids, etc.

Back

Preview of the back of card 5
View more cards

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