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business - PESTEC
163
โข
Jun 26, 2025
โข
Political and Economic Factors Affecting Business - Examples and Trends
emma๐ค
@emmawellsxx
PESTEC: External Factors Affecting Businesses
The PESTEC framework outlines six crucial external factors that significantly influence business operations and success in the UK market. These factors encompass Political, Economic, Social, Technological, Environmental, and Competitive elements, each playing a vital role in shaping the business landscape.
Political Factors
Political factors affecting business in UK include government decisions that can have profound impacts on company operations and profitability. One notable example is changes to the national minimum wage.
Example: An increase in the national minimum wage can lead to higher labor costs for businesses, potentially reducing their profit margins if they cannot offset these expenses through increased productivity or higher prices.
Economic Factors
The impact of economic environment on business is substantial, with changes in interest rates and employment levels being particularly significant.
Highlight: Economic fluctuations can dramatically affect consumer spending patterns and, consequently, business sales and revenue.
Example: An increase in interest rates may lead to reduced consumer spending as borrowing becomes more expensive, potentially resulting in decreased sales for many businesses.
Social Factors
Social trends influencing business competitiveness are crucial for companies to monitor and adapt to. These trends reflect changes in consumer preferences and buying habits.
Definition: Social trends refer to shifts in societal attitudes, values, and behaviors that influence consumer choices and market demands.
Businesses must stay attuned to these trends to remain competitive and meet evolving customer needs.
Technological Factors
Technological advancements present both opportunities and challenges for businesses. Companies often need to invest in new technologies to stay competitive.
Vocabulary: Tech adoption costs refer to the expenses associated with implementing and maintaining new technological systems within a business.
Environmental Factors
Environmental conditions, particularly extreme weather events, can have significant impacts on business operations.
Example: Heavy snowfall can disrupt supply chains, leading to inventory shortages. This can result in lost sales and potential damage to a company's reputation if they cannot meet customer demands.
Competitive Factors
The competitive landscape can force businesses to adjust their strategies, often impacting profitability.
Quote: "Competitive pressures can force the business into also reducing their prices. This could have a negative effect on profit."
Understanding and adapting to these PESTEC factors is crucial for businesses to navigate the complex and ever-changing UK market successfully. By staying informed and responsive to these external influences, companies can better position themselves for long-term success and resilience in the face of challenges.
We thought youโd never ask...
What is the Knowunity AI companion?
Our AI companion is specifically built for the needs of students. Based on the millions of content pieces we have on the platform we can provide truly meaningful and relevant answers to students. But its not only about answers, the companion is even more about guiding students through their daily learning challenges, with personalised study plans, quizzes or content pieces in the chat and 100% personalisation based on the students skills and developments.
Where can I download the Knowunity app?
You can download the app in the Google Play Store and in the Apple App Store.
Is Knowunity really free of charge?
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Can't find what you're looking for? Explore other subjects.
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4.9/5
App Store
4.8/5
Google Play
The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.
Stefan S
iOS user
This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.
Samantha Klich
Android user
Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.
Anna
iOS user
I think itโs very much worth it and youโll end up using it a lot once you get the hang of it and even after looking at others notes you can still ask your Artificial intelligence buddy the question and ask to simplify it if you still donโt get it!!! In the end I think itโs worth it ๐๐ โ ๏ธAlso DID I MENTION ITS FREEE YOU DONโT HAVE TO PAY FOR ANYTHING AND STILL GET YOUR GRADES IN PERFECTLYโ๏ธโ๏ธโ ๏ธ
Thomas R
iOS user
Knowunity is the BEST app Iโve used in a minute. This is not an ai review or anything this is genuinely coming from a 7th grade student (I know 2011 im young) but dude this app is a 10/10 i have maintained a 3.8 gpa and have plenty of time for gaming. I love it and my mom is just happy I got good grades
Brad T
Android user
Not only did it help me find the answer but it also showed me alternative ways to solve it. I was horrible in math and science but now I have an a in both subjects. Thanks for the help๐ค๐ค
David K
iOS user
The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!
Sudenaz Ocak
Android user
In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.
Greenlight Bonnie
Android user
I found this app a couple years ago and it has only gotten better since then. I really love it because it can help with written questions and photo questions. Also, it can find study guides that other people have made as well as flashcard sets and practice tests. The free version is also amazing for students who might not be able to afford it. Would 100% recommend
Aubrey
iOS user
Best app if you're in Highschool or Junior high. I have been using this app for 2 school years and it's the best, it's good if you don't have anyone to help you with school work.๐๐ฉท๐
Marco B
iOS user
THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH ๐๐๐ฒ๐ค๐โจ๐๐ฎ
Elisha
iOS user
This app is phenomenal down to the correct info and the various topics you can study! I greatly recommend it for people who struggle with procrastination and those who need homework help. It has been perfectly accurate for world 1 history as far as Iโve seen! Geometry too!
Paul T
iOS user
The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.
Stefan S
iOS user
This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.
Samantha Klich
Android user
Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.
Anna
iOS user
I think itโs very much worth it and youโll end up using it a lot once you get the hang of it and even after looking at others notes you can still ask your Artificial intelligence buddy the question and ask to simplify it if you still donโt get it!!! In the end I think itโs worth it ๐๐ โ ๏ธAlso DID I MENTION ITS FREEE YOU DONโT HAVE TO PAY FOR ANYTHING AND STILL GET YOUR GRADES IN PERFECTLYโ๏ธโ๏ธโ ๏ธ
Thomas R
iOS user
Knowunity is the BEST app Iโve used in a minute. This is not an ai review or anything this is genuinely coming from a 7th grade student (I know 2011 im young) but dude this app is a 10/10 i have maintained a 3.8 gpa and have plenty of time for gaming. I love it and my mom is just happy I got good grades
Brad T
Android user
Not only did it help me find the answer but it also showed me alternative ways to solve it. I was horrible in math and science but now I have an a in both subjects. Thanks for the help๐ค๐ค
David K
iOS user
The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!
Sudenaz Ocak
Android user
In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.
Greenlight Bonnie
Android user
I found this app a couple years ago and it has only gotten better since then. I really love it because it can help with written questions and photo questions. Also, it can find study guides that other people have made as well as flashcard sets and practice tests. The free version is also amazing for students who might not be able to afford it. Would 100% recommend
Aubrey
iOS user
Best app if you're in Highschool or Junior high. I have been using this app for 2 school years and it's the best, it's good if you don't have anyone to help you with school work.๐๐ฉท๐
Marco B
iOS user
THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH ๐๐๐ฒ๐ค๐โจ๐๐ฎ
Elisha
iOS user
This app is phenomenal down to the correct info and the various topics you can study! I greatly recommend it for people who struggle with procrastination and those who need homework help. It has been perfectly accurate for world 1 history as far as Iโve seen! Geometry too!
Paul T
iOS user
Political and Economic Factors Affecting Business - Examples and Trends
emma๐ค
@emmawellsxx
The UK business environment is shaped by various external influences on a business, known as PESTEC factors. These political factors affecting businessinclude government decisions, economic shifts, social trends, technological advancements, environmental changes, and competitive pressures. Each factor can... Show more
PESTEC: External Factors Affecting Businesses
The PESTEC framework outlines six crucial external factors that significantly influence business operations and success in the UK market. These factors encompass Political, Economic, Social, Technological, Environmental, and Competitive elements, each playing a vital role in shaping the business landscape.
Political Factors
Political factors affecting business in UK include government decisions that can have profound impacts on company operations and profitability. One notable example is changes to the national minimum wage.
Example: An increase in the national minimum wage can lead to higher labor costs for businesses, potentially reducing their profit margins if they cannot offset these expenses through increased productivity or higher prices.
Economic Factors
The impact of economic environment on business is substantial, with changes in interest rates and employment levels being particularly significant.
Highlight: Economic fluctuations can dramatically affect consumer spending patterns and, consequently, business sales and revenue.
Example: An increase in interest rates may lead to reduced consumer spending as borrowing becomes more expensive, potentially resulting in decreased sales for many businesses.
Social Factors
Social trends influencing business competitiveness are crucial for companies to monitor and adapt to. These trends reflect changes in consumer preferences and buying habits.
Definition: Social trends refer to shifts in societal attitudes, values, and behaviors that influence consumer choices and market demands.
Businesses must stay attuned to these trends to remain competitive and meet evolving customer needs.
Technological Factors
Technological advancements present both opportunities and challenges for businesses. Companies often need to invest in new technologies to stay competitive.
Vocabulary: Tech adoption costs refer to the expenses associated with implementing and maintaining new technological systems within a business.
Environmental Factors
Environmental conditions, particularly extreme weather events, can have significant impacts on business operations.
Example: Heavy snowfall can disrupt supply chains, leading to inventory shortages. This can result in lost sales and potential damage to a company's reputation if they cannot meet customer demands.
Competitive Factors
The competitive landscape can force businesses to adjust their strategies, often impacting profitability.
Quote: "Competitive pressures can force the business into also reducing their prices. This could have a negative effect on profit."
Understanding and adapting to these PESTEC factors is crucial for businesses to navigate the complex and ever-changing UK market successfully. By staying informed and responsive to these external influences, companies can better position themselves for long-term success and resilience in the face of challenges.
We thought youโd never ask...
What is the Knowunity AI companion?
Our AI companion is specifically built for the needs of students. Based on the millions of content pieces we have on the platform we can provide truly meaningful and relevant answers to students. But its not only about answers, the companion is even more about guiding students through their daily learning challenges, with personalised study plans, quizzes or content pieces in the chat and 100% personalisation based on the students skills and developments.
Where can I download the Knowunity app?
You can download the app in the Google Play Store and in the Apple App Store.
Is Knowunity really free of charge?
You have the choice, we offer a 100% secure payment via PayPal or an Amazon gift card. There is no limit to how much you can earn.
Can't find what you're looking for? Explore other subjects.
Students love us โ and so will you.
4.9/5
App Store
4.8/5
Google Play
The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.
Stefan S
iOS user
This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.
Samantha Klich
Android user
Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.
Anna
iOS user
I think itโs very much worth it and youโll end up using it a lot once you get the hang of it and even after looking at others notes you can still ask your Artificial intelligence buddy the question and ask to simplify it if you still donโt get it!!! In the end I think itโs worth it ๐๐ โ ๏ธAlso DID I MENTION ITS FREEE YOU DONโT HAVE TO PAY FOR ANYTHING AND STILL GET YOUR GRADES IN PERFECTLYโ๏ธโ๏ธโ ๏ธ
Thomas R
iOS user
Knowunity is the BEST app Iโve used in a minute. This is not an ai review or anything this is genuinely coming from a 7th grade student (I know 2011 im young) but dude this app is a 10/10 i have maintained a 3.8 gpa and have plenty of time for gaming. I love it and my mom is just happy I got good grades
Brad T
Android user
Not only did it help me find the answer but it also showed me alternative ways to solve it. I was horrible in math and science but now I have an a in both subjects. Thanks for the help๐ค๐ค
David K
iOS user
The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!
Sudenaz Ocak
Android user
In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.
Greenlight Bonnie
Android user
I found this app a couple years ago and it has only gotten better since then. I really love it because it can help with written questions and photo questions. Also, it can find study guides that other people have made as well as flashcard sets and practice tests. The free version is also amazing for students who might not be able to afford it. Would 100% recommend
Aubrey
iOS user
Best app if you're in Highschool or Junior high. I have been using this app for 2 school years and it's the best, it's good if you don't have anyone to help you with school work.๐๐ฉท๐
Marco B
iOS user
THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH ๐๐๐ฒ๐ค๐โจ๐๐ฎ
Elisha
iOS user
This app is phenomenal down to the correct info and the various topics you can study! I greatly recommend it for people who struggle with procrastination and those who need homework help. It has been perfectly accurate for world 1 history as far as Iโve seen! Geometry too!
Paul T
iOS user
The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.
Stefan S
iOS user
This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.
Samantha Klich
Android user
Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.
Anna
iOS user
I think itโs very much worth it and youโll end up using it a lot once you get the hang of it and even after looking at others notes you can still ask your Artificial intelligence buddy the question and ask to simplify it if you still donโt get it!!! In the end I think itโs worth it ๐๐ โ ๏ธAlso DID I MENTION ITS FREEE YOU DONโT HAVE TO PAY FOR ANYTHING AND STILL GET YOUR GRADES IN PERFECTLYโ๏ธโ๏ธโ ๏ธ
Thomas R
iOS user
Knowunity is the BEST app Iโve used in a minute. This is not an ai review or anything this is genuinely coming from a 7th grade student (I know 2011 im young) but dude this app is a 10/10 i have maintained a 3.8 gpa and have plenty of time for gaming. I love it and my mom is just happy I got good grades
Brad T
Android user
Not only did it help me find the answer but it also showed me alternative ways to solve it. I was horrible in math and science but now I have an a in both subjects. Thanks for the help๐ค๐ค
David K
iOS user
The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!
Sudenaz Ocak
Android user
In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.
Greenlight Bonnie
Android user
I found this app a couple years ago and it has only gotten better since then. I really love it because it can help with written questions and photo questions. Also, it can find study guides that other people have made as well as flashcard sets and practice tests. The free version is also amazing for students who might not be able to afford it. Would 100% recommend
Aubrey
iOS user
Best app if you're in Highschool or Junior high. I have been using this app for 2 school years and it's the best, it's good if you don't have anyone to help you with school work.๐๐ฉท๐
Marco B
iOS user
THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH ๐๐๐ฒ๐ค๐โจ๐๐ฎ
Elisha
iOS user
This app is phenomenal down to the correct info and the various topics you can study! I greatly recommend it for people who struggle with procrastination and those who need homework help. It has been perfectly accurate for world 1 history as far as Iโve seen! Geometry too!
Paul T
iOS user