3.1 External Factors
The external environment covers a range of factors which may affect a business but are outside the
control of the buisness. External factors can affect a business’ costs and demands. Use PESTLE+C to
remember the:
Political
Economic
Social
Technological
Legal
Ethical/Environmental
+
Compition
Examples of PESTLE+C factors:
Political
- Competition policy
- Industry regulation
- Government spending and tax policies
- Business policies and incentives
Economic
- Interest rates
- Consumer spending and income
- Exchange rates
- Economic growth (GDP)
- Inflation
Social
- Demographic change
- Impact of pressure groups
- Consumer tastes and fashions
- Changing lifestyles
- Fuel Contracts – Fuel Hedging
Technological
- Disruptive technologies
- Adoption of mobile tach
- New production processes
- Big data and dynamic pricing
Legal
The external environment covers a range of factors which may affect a business but are outside the
control of the buisness. External factors can affect a business’ costs and demands. Use PESTLE+C to
remember the:
Political
Economic
Social
Technological
Legal
Ethical/Environmental
+
Compition
Examples of PESTLE+C factors:
Political
- Competition policy
- Industry regulation
- Government spending and tax policies
- Business policies and incentives
Economic
- Interest rates
- Consumer spending and income
- Exchange rates
- Economic growth (GDP)
- Inflation
Social
- Demographic change
- Impact of pressure groups
- Consumer tastes and fashions
- Changing lifestyles
- Fuel Contracts – Fuel Hedging
Technological
- Disruptive technologies
- Adoption of mobile tach
- New production processes
- Big data and dynamic pricing
Legal
