Chapter 7

Question 1

What does pestle mean?

Answer 1

Political factors
Economical factors
Social factors
Techniological factors
Environmental factor
Legal factor

Question 2

Different governments will have different goals and policies. This will create what

Answer 2

Political factors, which can have a direct effect on the way an organisation operates

Question 3

Government typically set policies across the following areas:

Answer 3

Housing
Healthcare
Energy
Infrastructure
Crime
Education
Defence
Town planning
Foreign

Question 4

What are all businesses affected by?

Answer 4

Economical factors, nationally and globally eg within the UK the state of economy can dictate consumer expenses on luxury goods

Question 5

What are the key economical influences on an organisation?

Answer 5

Interest rates, exchange rates, disposable incomes, business cycles, inflation

Question 6

How does inflation influence an organisation?

Answer 6

This can even increase selling price or increase the cost of resources

Question 7

How does business cycles influence an organisation?

Answer 7

In a recession consumers move down market and reduce spending

Question 8

How does disposable income influence and organisation?

Answer 8

As this increases spending on non-essentials increase

Question 9

How does exchange rates influence and organisation?

Answer 9

As the money weakens it is easier to sell products overseas but more expensive to buy suppliers overseas

Question 10

What can social factors relate to?

Answer 10

Changes in demographics or changes to consumers needs and tastes. Organisations will have to adapt to the social changes.

Question 11

Society might change in the following ways:

Answer 11

Social structure, values, attitude, tastes

Question 12

Technology is an area in which changes take place…

Answer 12

Very rapidly and the organisation needs to be constantly aware of what is going on

Question 13

Technology change in the form of automation and intelligence systems are rapidly changing. What?

Answer 13

How organisation structure the activities they undertake as computers, robots and machines increasingly perform tasks traditionally carried out by people

Question 14

Laws and regulations governing businesses are widespread, these include

Answer 14

Laws and health and safety information disclosure the dismissal of employees vehicle admissions the use of pesticides and many more

Question 15

Some pieces of legislation that apply to most organisations include

Answer 15

Employment law
Data protection law
Health and safety law
Consumer protection

Question 16

What is employment law?

Answer 16

Minimum and living wage, trade union recognisation, diversity, unfair dismissal, redundancy, maternity, equality, gender pay gap

Question 17

What is data protection law?

Answer 17

The use of information about employees and customers

Question 18

What is health and safety law?

Answer 18

Fire precautions and safety procedures

Question 19

What is consumer protection?

Answer 19

Laws to protect consumers advertising watchdog regulations

Question 20

Environmental factors have become increasingly important in recent years and influence what?

Answer 20

Influencer marketing orientated organisation in a number of ways

Question 21

Some key environmental influences on organisations are

Answer 21

Protection of natural resources
Sustainability
Social conscious

Question 22

What is protection of natural resources?

Answer 22

Ensuring the natural resources such as water would and vegetation is not destroyed 

Question 23

What is sustainability?

Answer 23

Ensuring that any resources that are use can be replenished

Question 24

What is social conscience?

Answer 24

Ensuring that the organisation does not harm or disturbance to its local public or to society a whole

Question 25

Describe political

Answer 25

Influences and events, legislations government policies, changes to competition or import duties

Question 26

Define economic

Answer 26

A multination company will be concerned about the international situation, while an organisation trading exclusively in one country might be more concerned with the level and timing of domestic development. Items of information relevant market plans might include changes in the gross domestic product changes in income and expenditure interest rate.

Question 27

Define social

Answer 27

Social influences include social, cultural or demographic factors. Are you population, shift, age, profiles et cetera and refers to attitudes values and beliefs held by people also changes in lifestyle, education and health among other factors.

Question 28

What is technological

Answer 28

Influences change in material supply, processing and production methods, a new product development. For example, the improvements and video conference technology have improved the ability for organisations to operate internationally without the need for regular travel.

Question 29

Define legal

Answer 29

Influences changing in law and regulations affecting, for example, competition, patent, sale of goods, pollution, working regulations in industrial standards

Question 30

Define ecological/environmental

Answer 30

Include the impact of organisation has on its external environment, including pollution

Question 31

Example of economical factors

Answer 31

Interest rates exchange rates, changes in income and business, cycles, inflation, employment, and unemployment

Question 32

Example of social factors

Answer 32

Trends and demographic changes, including house of structure, population, age, and geography

Question 33

Example of technical logical factors

Answer 33

Impact on structure, increased mobile phone and Internet access

Question 34

Examples of environmental factors

Answer 34

Demand, excessive packaging may negatively affect the environment

Question 35

Example of political

Answer 35

Changes in government policy, taxation import, export rules and levels of public spending