FACTORS AFFECTING A BUSINESS

• What do organizations need to do in a changing business environment?

  Organizations need to adapt to a changing, volatile business/economic environment.
• Why is it important for an organization to understand different factors impacting it?

  It is important to account for changes that it needs to adapt to.
• What are the two types of factors that impact an organization?

  • Internal factors: within the organization that can be controlled.
  • External factors: influences outside their control.
• What are some internal factors that can impact an organization?

  • Finance: prioritizing spending for investment/growth.
  • Budget constraints: avoiding overspending.
  • Skills of employees: ensuring they meet output/demand.
  • Motivation of staff: maintaining high productivity levels.
  • Technology: maximizing output and saving costs.
  • Corporate culture: fostering a positive work environment.
• What is a key consideration regarding finance for an organization?

  Organizations must prioritize spending for investment and growth.
• Why is employee motivation important for an organization?

  High levels of employee motivation lead to increased productivity.
• What role does technology play in an organization?

  Technology can maximize output and save costs.
• What are some characteristics of a good corporate culture?

  • Flexible working hours.
  • Incentives for working overtime.
  • Job perks as rewards for hard work.
• What does PESTEC stand for in business analysis?

  • Political
  • Economic
  • Social
  • Technological
  • Environmental
  • Competitive
• What are some political factors that can affect a business?

  Changes in taxes, minimum wage, and trade tariffs can impact businesses.
• How can economic factors like inflation affect a business?

  Inflation can lead to increased costs and affect borrowing rates.
• What social trends are currently impacting businesses?

  There is an increase in demand for vegan foods and electric cars.
• What technological advancements are influencing businesses?


  New technology can make goods quicker and cheaper, and replace staff.
• What environmental factors are businesses facing today?

  Businesses are dealing with increased plastic use and extreme weather events.
• How does the competitive factor affect a businesses?

  Competition can lead to cheaper goods and increased access to online markets.
• What are the universal impacts of external factors on a business?

  • Costs
  • Operations
  • Pricing
  • Growth/survival and investment
  • Sales
  • Employees
  • Competition
  • Production
  • Customers/footfall
  • Reputation