11 Int And Ext Factors
- 1. BUSINESS SYSTEMS INPUTS PROCESSES OUTPUTS FEEDBACK - positive if high demand FEEDBACK - negative if low demand
- 2. BUSINESS ENVIRONMENT All businesses must recognise the need to change Pressures to change may come from within or without an organisation Internal pressures include new personnel (management) Current skills/abilities of workforce new technology a change in financial position
- 3. PESTEC A company cannot ignore its external environment – those events outwith a company’s control. All companies must react to changes in their external environment. Those factors or pressures can be summarised as: SOCIAL POLITICAL ENVIRONMENTAL ECONOMIC TECHNOLOGICAL COMPETITIVE
- 4. P – political factors such as changes in UK or EU laws, eg health & safety or minimum wage E – economic factors such as inflation, exchange rates and interest rates and recession S – social factors such as demographic changes like ageing population, average age of first time mothers Socio-cultural changes like more women working, increased leisure time, changes in fashion/tastes T – technological factors such as e-commerce, robots E – environmental factors such as recycling C – competitive factors such as a competitor lowering prices, opening a new branch, or introducing a new product.
- 5. Question Describe external factor that could affect the success or failure of a business like JD Wetherspoon.