BTEC Level 3 Business Unit 1 Assignment 2

BTEC Level 3 Business Unit 1 Assignment 2 – P 6, M 3, D 2

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 � Ageing in social trends, what does society look like today? 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

P 6� Produce a table to show Political, Social and Legal Factors and the impact on business activity and stakeholders PESTLE Factor Political Social Legal Affect on business activities 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 Affect on Stakeholders Employees- Wages may not increase as much as the business does not want to reduce their profits, reduced overtime and training Customers Shareholders-

M 3 - Impact on the business � To reach M 3 you need to add a column/ explanation to each of your tables. � Explain take. � E. g. the action that both business will have to 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.

D 2 - 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.