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business - PESTEC
163
โข
27 Jun 2025
โข
Political and Economic Factors Affecting Business - Examples and Trends
emma๐ค
@emmawellsxx
PESTEC: External Factors Affecting Businesses
The PESTEC framework outlines six crucial external factors that significantly influence business operations and success in the UK market. These factors encompass Political, Economic, Social, Technological, Environmental, and Competitive elements, each playing a vital role in shaping the business landscape.
Political Factors
Political factors affecting business in UK include government decisions that can have profound impacts on company operations and profitability. One notable example is changes to the national minimum wage.
Example: An increase in the national minimum wage can lead to higher labor costs for businesses, potentially reducing their profit margins if they cannot offset these expenses through increased productivity or higher prices.
Economic Factors
The impact of economic environment on business is substantial, with changes in interest rates and employment levels being particularly significant.
Highlight: Economic fluctuations can dramatically affect consumer spending patterns and, consequently, business sales and revenue.
Example: An increase in interest rates may lead to reduced consumer spending as borrowing becomes more expensive, potentially resulting in decreased sales for many businesses.
Social Factors
Social trends influencing business competitiveness are crucial for companies to monitor and adapt to. These trends reflect changes in consumer preferences and buying habits.
Definition: Social trends refer to shifts in societal attitudes, values, and behaviors that influence consumer choices and market demands.
Businesses must stay attuned to these trends to remain competitive and meet evolving customer needs.
Technological Factors
Technological advancements present both opportunities and challenges for businesses. Companies often need to invest in new technologies to stay competitive.
Vocabulary: Tech adoption costs refer to the expenses associated with implementing and maintaining new technological systems within a business.
Environmental Factors
Environmental conditions, particularly extreme weather events, can have significant impacts on business operations.
Example: Heavy snowfall can disrupt supply chains, leading to inventory shortages. This can result in lost sales and potential damage to a company's reputation if they cannot meet customer demands.
Competitive Factors
The competitive landscape can force businesses to adjust their strategies, often impacting profitability.
Quote: "Competitive pressures can force the business into also reducing their prices. This could have a negative effect on profit."
Understanding and adapting to these PESTEC factors is crucial for businesses to navigate the complex and ever-changing UK market successfully. By staying informed and responsive to these external influences, companies can better position themselves for long-term success and resilience in the face of challenges.
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4.9/5
App Store
4.8/5
Google Play
The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.
Stefan S
iOS user
This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.
Samantha Klich
Android user
Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.
Anna
iOS user
Best app on earth! no words because itโs too good
Thomas R
iOS user
Just amazing. Let's me revise 10x better, this app is a quick 10/10. I highly recommend it to anyone. I can watch and search for notes. I can save them in the subject folder. I can revise it any time when I come back. If you haven't tried this app, you're really missing out.
Basil
Android user
This app has made me feel so much more confident in my exam prep, not only through boosting my own self confidence through the features that allow you to connect with others and feel less alone, but also through the way the app itself is centred around making you feel better. It is easy to navigate, fun to use, and helpful to anyone struggling in absolutely any way.
David K
iOS user
The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!
Sudenaz Ocak
Android user
In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.
Greenlight Bonnie
Android user
very reliable app to help and grow your ideas of Maths, English and other related topics in your works. please use this app if your struggling in areas, this app is key for that. wish I'd of done a review before. and it's also free so don't worry about that.
Rohan U
Android user
I know a lot of apps use fake accounts to boost their reviews but this app deserves it all. Originally I was getting 4 in my English exams and this time I got a grade 7. I didnโt even know about this app three days until the exam and it has helped A LOT. Please actually trust me and use it as Iโm sure you too will see developments.
Xander S
iOS user
THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH ๐๐๐ฒ๐ค๐โจ๐๐ฎ
Elisha
iOS user
This apps acc the goat. I find revision so boring but this app makes it so easy to organize it all and then you can ask the freeeee ai to test yourself so good and you can easily upload your own stuff. highly recommend as someone taking mocks now
Paul T
iOS user
The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.
Stefan S
iOS user
This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.
Samantha Klich
Android user
Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.
Anna
iOS user
Best app on earth! no words because itโs too good
Thomas R
iOS user
Just amazing. Let's me revise 10x better, this app is a quick 10/10. I highly recommend it to anyone. I can watch and search for notes. I can save them in the subject folder. I can revise it any time when I come back. If you haven't tried this app, you're really missing out.
Basil
Android user
This app has made me feel so much more confident in my exam prep, not only through boosting my own self confidence through the features that allow you to connect with others and feel less alone, but also through the way the app itself is centred around making you feel better. It is easy to navigate, fun to use, and helpful to anyone struggling in absolutely any way.
David K
iOS user
The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!
Sudenaz Ocak
Android user
In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.
Greenlight Bonnie
Android user
very reliable app to help and grow your ideas of Maths, English and other related topics in your works. please use this app if your struggling in areas, this app is key for that. wish I'd of done a review before. and it's also free so don't worry about that.
Rohan U
Android user
I know a lot of apps use fake accounts to boost their reviews but this app deserves it all. Originally I was getting 4 in my English exams and this time I got a grade 7. I didnโt even know about this app three days until the exam and it has helped A LOT. Please actually trust me and use it as Iโm sure you too will see developments.
Xander S
iOS user
THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH ๐๐๐ฒ๐ค๐โจ๐๐ฎ
Elisha
iOS user
This apps acc the goat. I find revision so boring but this app makes it so easy to organize it all and then you can ask the freeeee ai to test yourself so good and you can easily upload your own stuff. highly recommend as someone taking mocks now
Paul T
iOS user
Political and Economic Factors Affecting Business - Examples and Trends
emma๐ค
@emmawellsxx
The UK business environment is shaped by various external influences on a business, known as PESTEC factors. These political factors affecting businessinclude government decisions, economic shifts, social trends, technological advancements, environmental changes, and competitive pressures. Each factor can... Show more
PESTEC: External Factors Affecting Businesses
The PESTEC framework outlines six crucial external factors that significantly influence business operations and success in the UK market. These factors encompass Political, Economic, Social, Technological, Environmental, and Competitive elements, each playing a vital role in shaping the business landscape.
Political Factors
Political factors affecting business in UK include government decisions that can have profound impacts on company operations and profitability. One notable example is changes to the national minimum wage.
Example: An increase in the national minimum wage can lead to higher labor costs for businesses, potentially reducing their profit margins if they cannot offset these expenses through increased productivity or higher prices.
Economic Factors
The impact of economic environment on business is substantial, with changes in interest rates and employment levels being particularly significant.
Highlight: Economic fluctuations can dramatically affect consumer spending patterns and, consequently, business sales and revenue.
Example: An increase in interest rates may lead to reduced consumer spending as borrowing becomes more expensive, potentially resulting in decreased sales for many businesses.
Social Factors
Social trends influencing business competitiveness are crucial for companies to monitor and adapt to. These trends reflect changes in consumer preferences and buying habits.
Definition: Social trends refer to shifts in societal attitudes, values, and behaviors that influence consumer choices and market demands.
Businesses must stay attuned to these trends to remain competitive and meet evolving customer needs.
Technological Factors
Technological advancements present both opportunities and challenges for businesses. Companies often need to invest in new technologies to stay competitive.
Vocabulary: Tech adoption costs refer to the expenses associated with implementing and maintaining new technological systems within a business.
Environmental Factors
Environmental conditions, particularly extreme weather events, can have significant impacts on business operations.
Example: Heavy snowfall can disrupt supply chains, leading to inventory shortages. This can result in lost sales and potential damage to a company's reputation if they cannot meet customer demands.
Competitive Factors
The competitive landscape can force businesses to adjust their strategies, often impacting profitability.
Quote: "Competitive pressures can force the business into also reducing their prices. This could have a negative effect on profit."
Understanding and adapting to these PESTEC factors is crucial for businesses to navigate the complex and ever-changing UK market successfully. By staying informed and responsive to these external influences, companies can better position themselves for long-term success and resilience in the face of challenges.
We thought youโd never ask...
What is the Knowunity AI companion?
Our AI Companion is a student-focused AI tool that offers more than just answers. Built on millions of Knowunity resources, it provides relevant information, personalised study plans, quizzes, and content directly in the chat, adapting to your individual learning journey.
Where can I download the Knowunity app?
You can download the app from Google Play Store and Apple App Store.
Is Knowunity really free of charge?
That's right! Enjoy free access to study content, connect with fellow students, and get instant help โ all at your fingertips.
Can't find what you're looking for? Explore other subjects.
Students love us โ and so will you.
4.9/5
App Store
4.8/5
Google Play
The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.
Stefan S
iOS user
This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.
Samantha Klich
Android user
Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.
Anna
iOS user
Best app on earth! no words because itโs too good
Thomas R
iOS user
Just amazing. Let's me revise 10x better, this app is a quick 10/10. I highly recommend it to anyone. I can watch and search for notes. I can save them in the subject folder. I can revise it any time when I come back. If you haven't tried this app, you're really missing out.
Basil
Android user
This app has made me feel so much more confident in my exam prep, not only through boosting my own self confidence through the features that allow you to connect with others and feel less alone, but also through the way the app itself is centred around making you feel better. It is easy to navigate, fun to use, and helpful to anyone struggling in absolutely any way.
David K
iOS user
The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!
Sudenaz Ocak
Android user
In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.
Greenlight Bonnie
Android user
very reliable app to help and grow your ideas of Maths, English and other related topics in your works. please use this app if your struggling in areas, this app is key for that. wish I'd of done a review before. and it's also free so don't worry about that.
Rohan U
Android user
I know a lot of apps use fake accounts to boost their reviews but this app deserves it all. Originally I was getting 4 in my English exams and this time I got a grade 7. I didnโt even know about this app three days until the exam and it has helped A LOT. Please actually trust me and use it as Iโm sure you too will see developments.
Xander S
iOS user
THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH ๐๐๐ฒ๐ค๐โจ๐๐ฎ
Elisha
iOS user
This apps acc the goat. I find revision so boring but this app makes it so easy to organize it all and then you can ask the freeeee ai to test yourself so good and you can easily upload your own stuff. highly recommend as someone taking mocks now
Paul T
iOS user
The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.
Stefan S
iOS user
This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.
Samantha Klich
Android user
Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.
Anna
iOS user
Best app on earth! no words because itโs too good
Thomas R
iOS user
Just amazing. Let's me revise 10x better, this app is a quick 10/10. I highly recommend it to anyone. I can watch and search for notes. I can save them in the subject folder. I can revise it any time when I come back. If you haven't tried this app, you're really missing out.
Basil
Android user
This app has made me feel so much more confident in my exam prep, not only through boosting my own self confidence through the features that allow you to connect with others and feel less alone, but also through the way the app itself is centred around making you feel better. It is easy to navigate, fun to use, and helpful to anyone struggling in absolutely any way.
David K
iOS user
The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!
Sudenaz Ocak
Android user
In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.
Greenlight Bonnie
Android user
very reliable app to help and grow your ideas of Maths, English and other related topics in your works. please use this app if your struggling in areas, this app is key for that. wish I'd of done a review before. and it's also free so don't worry about that.
Rohan U
Android user
I know a lot of apps use fake accounts to boost their reviews but this app deserves it all. Originally I was getting 4 in my English exams and this time I got a grade 7. I didnโt even know about this app three days until the exam and it has helped A LOT. Please actually trust me and use it as Iโm sure you too will see developments.
Xander S
iOS user
THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH ๐๐๐ฒ๐ค๐โจ๐๐ฎ
Elisha
iOS user
This apps acc the goat. I find revision so boring but this app makes it so easy to organize it all and then you can ask the freeeee ai to test yourself so good and you can easily upload your own stuff. highly recommend as someone taking mocks now
Paul T
iOS user