Essay on Factors That Affect The Business
P²estle² is also known as the Macro environment. It is seen as an external environment because it doesn’t have control over the factors that affect them, whether it affects them in a positive or negative way. This is also seen as the most challenging environment for businesses to deal with. P²estle² stands for the eight factors that affect the business. These eight factors are political, physical, economic, social, technological, legal/legislation, ethical and environmental.
Political means any political issues that could possibly affect a business. This would involve things like change in the government and or staffs different opinions with the different government groups. Physical means how the climate of the country can affect the business. This would be tings like a country that experiences natural disasters. As well as things like crime in the country falls here. Economic relates to economic issues like inflation, interest rates, exchange rates, recession and other world economy that could affect a business. Social is related to social-economic issues that the business has to take into account. Things like diseases like HIV/AIDS would fall here.
Technology relates to how the business stays up to date with all the advancing technology. This also takes into account how machinery can take many jobs away. Legal/legislation means all the laws and regulations that a business must follow. This helps the government ensure that businesses aren’t exploiting staff…