Economical factors
The economy plays a huge effect on businesses for example if the consumer spends more at Tesco then the business will attentively receive more revenue (income.) If the government raise taxes this then raises the costs of the business and could therefore affect what people buy, what the business sells and how much they sell it for e.g. Tesco could be affected by this as they might not gain as much as profit as they use to do because of the increase on tax. The economic factors covers a wide range of things, such as pay levels, cost of credit, competition, globalisation, labour, supply and demand and energy prices
Social factors
The social factors are changes within the population structure, the society of both national and international factors and also the social behaviour.
Technological factor
Technology changes vastly from year to year for example equipment, internet-access to broadband and other development. In the year 2008 many changed have been made by businesses to best suit the customer’s needs e.g. online shopping, free delivery, self service within stores.
Political factors: Tesco- The laws made by the government could be the consumers rights this is where the rights of the consumer must be held when dealing with products sold within the stores of Tesco, this could affect the overall business of Tesco as they would need to take in account what they are allowed to sell or not.
Economical Factors: Tesco- Tesco would need to ensure that they are playing their employees the right and same amount of money as each other unless a member of staff was ranked higher e.g. manager this liaises on with legislation-Equal opportunity as they must withhold paying their employees at least a minimum wage of £5.50 per hour. Completion can play a big part of Tesco as they would need to ensure that they keep up-to-date with competitors and be the leading number one supermarket. Tesco’s competitors are ASDA, Morison, Sainsbury’s etc.
Social factors: Tesco- Socially Tesco must need to do their market research on the area where they are. So they are meeting the demands of the customers such as the local Leytonstone, as this is a diverse area they have products from Asian cultures and more recently Polish foods due to the high number of people coming overseas to the UK. If they know their market they are likely to sell more meaning more profit. Apart from cultures birth rates in the UK vary from different counties and town. Somewhere along countryside Tesco would not sell a wide range of baby items as they are more likely to be retired couples. However some areas such as Liverpool who has a high number of birth rates will have more baby items and children’s products as socially they will be a demand for these products.
Technological factors: Tesco-In order to keep up-to-date and be ahead of their competitors Tesco must ensure that they have the best and latest of products located within their stores and outside such as giving public access to the Tesco homepage where they can shop online, and having a self service counter where customers can check out their own products and pay rather than waiting in a queue. Keeping up-to-date with technology as it can expand a business and therefore gain more of a profit.
Political factors: Victim Support- Victim support covers a various range of laws and regulations such as Human rights. The Data protection could affect Victim support as they wouldn’t be able to obtain information on people that may be useful to their decision making.
Economical factors: Victim Support- The economic factors do not clash as much as Tesco whereas majority of their workers do not get paid and are voluntary, they are funded by members of the public and by the government therefore they do not have any funded credit. As for competitive pressures they are not in competition with other charity organisation although they are in competition to receive the most money by the government rather than other organisations.
Social factors: Victim Support- The social factors of Victim Support would be the fund raising social events and cultural events held in order to raise money for their organisation.
Technological factors: Victim Support-Technological factors can only affect Victim Support by a certain extent as they must ensure they can get the best advertisements by internet or other resources, functional activity by holding events by using the latest of technology.
These changes by using PEST can provide an opportunity for development by an organisation and company, as they can develop and create a good image.
The impact on stakeholders
The stakeholders of a business or organisation can be affected by external changes that are made such as the growing environmental awareness and the change in people being more health conscious. Stake holders play a major part in the changes of strategies that a business makes. The attitudes of stakeholders are evolved around the political, social, economic, and technological environment.
