Notes Ch 8 External influences.notebook
Α2 Chapter 8 External influences on Business Activity
Case study page 83 Nokia & Telefonica
• All businesses operate in an environment comprising factors
beyond their control.
• These external factors can provide both limitations
(constraints) and opportunities.
• External factors are considered by means of PESTLE
analysis:
Political (government)
Economic
Social (& demographic)
Technological
Legal
Environmental
,Notes Ch 8 External influences.notebook
Political & legal factors
The doctrine of vicarious responsibility
• An employer is responsible for any damage caused by an
employee, notwithstanding any circumstance. The employee
will also be held responsible, but the primary responsibility is
with the employer.
Employers should consider this when hiring staff and when
deciding on insurance.
Legal constraints on business activity
1. Employment practices and conditions of work.
2. Marketing activities and consumer rights.
3. Business competition.
4. Location of businesses.
, Notes Ch 8 External influences.notebook
1. The law & employment practices
Laws differ between countries, but in general, the following are
accepted as the norm..
Objectives:
• prevention of worker exploitation
• prevention of loss of GDP from excessive industrial action by
Trade Unions.
Areas covered:
i. Recruitment, contracts & termination of employment
ii. Health & safety
iii. Minimum wages
iv. Trade Union rights & responsibilities
Α2 Chapter 8 External influences on Business Activity
Case study page 83 Nokia & Telefonica
• All businesses operate in an environment comprising factors
beyond their control.
• These external factors can provide both limitations
(constraints) and opportunities.
• External factors are considered by means of PESTLE
analysis:
Political (government)
Economic
Social (& demographic)
Technological
Legal
Environmental
,Notes Ch 8 External influences.notebook
Political & legal factors
The doctrine of vicarious responsibility
• An employer is responsible for any damage caused by an
employee, notwithstanding any circumstance. The employee
will also be held responsible, but the primary responsibility is
with the employer.
Employers should consider this when hiring staff and when
deciding on insurance.
Legal constraints on business activity
1. Employment practices and conditions of work.
2. Marketing activities and consumer rights.
3. Business competition.
4. Location of businesses.
, Notes Ch 8 External influences.notebook
1. The law & employment practices
Laws differ between countries, but in general, the following are
accepted as the norm..
Objectives:
• prevention of worker exploitation
• prevention of loss of GDP from excessive industrial action by
Trade Unions.
Areas covered:
i. Recruitment, contracts & termination of employment
ii. Health & safety
iii. Minimum wages
iv. Trade Union rights & responsibilities
