BTEC Level 3 Business

Unit 1 Assignment 2 – P6, M3, D2

Political Factors Changes take place in a business because of

political decisions made by the government.

Political Stability Government Support Taxation Direct Support Enhancing skills of the population Membership to international trading.

Economical Factors How is the economy at the moment and how

is it likely to move?

The business cycle- recession, boom, growth GDP Interest rates Exchange rates

Social Factors Changes in social trends, what does society look like today?

Ageing population Internet Cash rich time poor Willingness to work Demographic issues Changes in structure Household and families Education Attitude to work Religion Attitude to male and female roles Ethics.

Technological factors What new technologies have evolved and are

likely to evolve?

Innovation New product development Rate of technological change

Legal Factors Businesses must operate within the

framework of the law. Protecting Employees

Consumer Protection Employment Law

Fair Trading Competition laws Health and Safety laws Employment laws

Environmental What is happening in the environment?

Global warming Environmental issues Recycling Carbon Emissions Packaging

P6- Produce a table to show how Political, Social

and Legal Factors and the impact on business activity and stakeholders

PESTLE Factor Affect on business activities Affect on Stakeholders

Political Tax- tax will affect any business because it impacts on the amount of profit which is made. Businesses will need to pay tax on the items they purchase and sometimes will pass this on to the consumer

Employees- Wages may not increase as much as the business does not want to reduce their profits, reduced overtime and trainingCustomers -Shareholders-

Social

Legal

M3- Impact on the business To reach M3 you need to add a column/ explanation

to each of your tables.

Explain the action that both business will have to take.

E.g. Increase in minimum wage- this means____ will need to ensure they are paying employees sufficiently, this could mean that they need to increase the wages of staff, to deal with this increase they could absorb the cost (reduce profits) or pass the cost onto the customer, this would mean increase the prices that they charge to their customers.

D2- Evaluate future changes For ONE businesses you need to consider the

future changes that may occur- what could happen and what affects would this have on the business.

You should divide this section into political, social and legal factors.