EXTERNAL ENVIRONMENT
Chapter 5
PEST is an acronym standing for political, economic,
social and technological factors that affect how a
business operates.
PEST worksheet
Which P E S T ?
How did it affect
businesses?
Which P E S T ?
How has it affected
the business?
Which P E S T ?
How has it affected
the business?
Which P E S T ?
How has it affected
the business?
Political – advantages / disadvantages
Economical - advantages / disadvantages
Social - advantages / disadvantages
Technological - advantages / disadvantages (chip & pin)
Prepare a
PEST analysis
for H&M as
they move to
Thailand [12]
Social & cultural
influences.
More people are living by
themselves and staying
single for longer, how has
this affected businesses?
Activity 5.5
•Identify two changes to the structure of the labour workforce forecast
over this period. How do these changes affect HR in a business.
How has the UK baby boom
affected businesses?
Revision Activity
The Chinese government is becoming increasingly concerned about higher
rates of inflation. Rising oil and petrol prices has increased costs to industry
and businesses are forced to raised prices to cover these higher costs. In
addition, rising demand for imported food in an increasingly wealthier
population has led to an excess demand, resulting in the People’s Bank of
China increasing interest rates. This is the third increase in less than a year.
China is now more prepared to use the monetary policy to manipulate the
economy. In 2007, China’s GDP increased by 10%, this exponential rate is
unsustainable.
1. State two reasons for the increase in inflation [2]
2. Are these causes push or demand pull pressures? [4]
3. Explain how the monetary policy can manipulate the economy [12]