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Business in External Worksheet

The document discusses how businesses operate within an external environment that is influenced by political, economic, social, technological, legal and environmental factors. It notes that the external environment can impact a business's costs and demand.

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Peter Masoes
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11 views

Business in External Worksheet

The document discusses how businesses operate within an external environment that is influenced by political, economic, social, technological, legal and environmental factors. It notes that the external environment can impact a business's costs and demand.

Uploaded by

Peter Masoes
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 19

3.1.

3 Understanding that
businesses operate within
an external environment

Starter

First, some UK demographic change facts:

• The current population in the UK is 66m and it has doubled in the


last 140 years

• Currently 18.2% of our population is over 65 years old

Questions:

A. What is the projected UK population in 2041?_________________________

B. What is the estimated % of UK citizens over 65 in 2041?


__________________

C. What might this mean for business?

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

________________________________________________________________

1
Definition: External Environment

__________________________________________________________________________________

__________________________________________________________________________________

__________________________________________________________________________________

P ES TLE
P

Politics – impact on costs

__________________________________________________________________________________

__________________________________________________________________________________

__________________________________________________________________________________

__________________________________________________________________________________

2
Social protection

__________________________________________________________________________________

__________________________________________________________________________________

Politics – impact on demand

__________________________________________________________________________________

__________________________________________________________________________________

__________________________________________________________________________________

__________________________________________________________________________________

Economics – impact on cost

3
Economics – impact on demand

Social - impact on costs

4
Social – impact on demand

5
Technology – impact on costs

Technology – impact on demand

Legal – impact on costs

6
Legal - impact on demand

7
Environment – impact on costs

Environment – impact on demand

8
Factors influencing cost and demand: Competition

9
Factors influencing cost and demand: Market conditions

Factors influencing cost and demand: Incomes

10
Factors influencing cost and demand: Interest rates

Factors influencing cost and demand: Demographic

factors

11
Factors influencing cost and demand: Environmental issues

Factors influencing cost and demand: Fair Trade

Plenary Quiz

1. What is an external environment of a business?

2. What does PESTLE stand for?

3. What happens to costs and demand if VAT rises?

4. What happens to costs and demand if interest rates fall?

5. What happens to costs and demand if a business switches to selling

Fairtrade products?

12
13
14
15
16
17
Market conditions

Interest rates

Demographic factors

18
Fairtrade

19

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