Legal
Cost effectiveness can affect Legal factors because it will lead the organisation to problems for example if they were to obtain information about some legal factors with a low budget, the business end up with misleading or outdated information about the legal factors they obtain. Having a good budget is really important and beneficial for a business because it will help enlighten themselves about what is legal and illegal in their activities.
Environmental
In a business, Environmental factors can be affected with cost effectiveness because an organisation needs to know where and how their business will sell more of their products or services and better reach their target audience and find out how most of them will respond to their advertisement. Knowing what environment to operate in is really important for a business because it can help the company to improve their overall performance.
How PESTLE is affected by the validity of Data Collected
Organisation use validity of data collected to set up their objectives, these objectives can be based on inaccurate or unreliable information. The strategies set up to achieve those objectives will take time to develop but they will be working towards wrong objectives. By the time the organisation realises the error they have made, they will have to change the way they operate which in turn will affect the organisation. After all these events, the organisation will then evaluate the objectives
If the information obtained on audit with PESTLE is not reliable or not from reliable sources, the information that has been gathered will be deemed as invalid because it comes from an unreliable source.
How SWOT is affected by Cost Effectiveness
Internal strengths And Internal Weaknesses
Cost effectiveness can affect internal strengths and Weaknesses because they help the business in analysing what areas they can and need to improve and also evaluate what their strengths weaknesses are to strengthen these areas too. If because of that the business is unable to do so, it can cause them problems in their future operations.
Opportunity and Threats
When it comes to Opportunity and threats, cost effectiveness can be crucial for an organisation if they don’t have a good budget. This is because threats can cause problems to the strategy plans of a business. Opportunities and threats are external sources that are need o be analysed with a budget, if budget isn’t enough to obtain information, the company could end up with inaccurate information about their target market.
How SWOT is affected by the validity of Data Collected
By using out of date information or data from unreliable sources, a business can end up having inaccurate information about the external opportunities and threats which could lead them to a massive disruption or loss to your. If the information a business possesses is incorrect then it will lead them into misleading or wrong information about internal strengths and weaknesses which could in turn lead their competitors into using their disadvantage to their advantage. This could result in a tricky and dangerous situation for the business.
How SMART is affected by Cost Effectiveness
Smart objectives can also be affected by Cost effectiveness because it has an influence on organisation.
SMART is technique used for market research, and is a very important for a business who wishes to do well. To achieve a specific target or to achieve an objective; smart can only be set and be effective if it is based upon realistic findings of market research. If for example a business wishing to use this technique has a low budget, it will be complicated for them to obtain accurate and valid information for the SMART to be carried out. Market research can only be relied upon and effective if it has come from valid and detailed a source which is affected by cost effectiveness.
How SMART is affected by the Validity of Data Collected
If the research that has been collected from the smart objectives is inaccurate then the objectives that the business has set based on the collected information will also be wrong. If the objectives are inaccurate or unreliable then the strategies that have been placed to achieve those objectives will lead the organisation to work towards wrong objectives. If the strategies and objectives are inaccurate then the changes that have been made to achieve those objectives will also been working towards wrong targets. By the time the business realises that most of their activities have been based on wrong information, they will see all the damage that it has caused them.
The business working towards their goals with wrong objectives based on wrong information will have wasted their time and resources. This will affect their performances and progress in the future.
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