WHAT IS A BUSINESS?: Unit 3 0.0 / 5 ? BusinessWhat is a Business?ASAQA Created by: alvlrevisionCreated on: 20-04-18 09:51 What are PESTLE factors? political, economical, social, technological, legal and environmental 1 of 14 Example of political factors? Government policies and extent of government intervention 2 of 14 Example of economic factors? Income levels; interest rates; exchange rates; inflation; employment levels; EU membership 3 of 14 Example of social factors? Demographic factors; ethical issues; impact of pressure groups 4 of 14 Example of technological factors? New products and processes; impact and cost of change 5 of 14 Example of legal factors? Legalisation (laws) 6 of 14 Example of environmental factors? Environmental issues; fair trade 7 of 14 What factors influence business costs and demands for goods? Competition; state of economy; impact of changes in interest rates; change in demographic 8 of 14 Factors affecting demand? Price; tastes and fashion; price of other goods; marketing and advertising; seasonal factors; government action (e.g. sugar tax). 9 of 14 Why is competition good? Improves efficiency, cost-effectiveness and quality of goods and services 10 of 14 Disadvantages of competition? Product quality can be sacrificed; huge resources that could be used elsewhere devoted to competition; can force businesses out of market 11 of 14 What are interest rates? The cost of borrowing money and the return for lending money. 12 of 14 What demographic factors could affect demand? Ageing populations, ethnically diverse populations, size of households 13 of 14 What environmental issues can affect demand? Customer concerns for ethnically friendly products. 14 of 14
Comments
No comments have yet been made