What are PESTLE factors?
political, economical, social, technological, legal and environmental
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Example of political factors?
Government policies and extent of government intervention
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Example of economic factors?
Income levels; interest rates; exchange rates; inflation; employment levels; EU membership
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Example of social factors?
Demographic factors; ethical issues; impact of pressure groups
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Example of technological factors?
New products and processes; impact and cost of change
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Example of legal factors?
Legalisation (laws)
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Example of environmental factors?
Environmental issues; fair trade
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What factors influence business costs and demands for goods?
Competition; state of economy; impact of changes in interest rates; change in demographic
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Factors affecting demand?
Price; tastes and fashion; price of other goods; marketing and advertising; seasonal factors; government action (e.g. sugar tax).
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Why is competition good?
Improves efficiency, cost-effectiveness and quality of goods and services
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Disadvantages of competition?
Product quality can be sacrificed; huge resources that could be used elsewhere devoted to competition; can force businesses out of market
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What are interest rates?
The cost of borrowing money and the return for lending money.
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What demographic factors could affect demand?
Ageing populations, ethnically diverse populations, size of households
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What environmental issues can affect demand?
Customer concerns for ethnically friendly products.
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Card 2


Example of political factors?


Government policies and extent of government intervention

Card 3


Example of economic factors?


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Card 4


Example of social factors?


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Card 5


Example of technological factors?


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