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Pestel. Nike is not likely to be affected by any political factors apart from war.

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Introduction

Pestel Pestel is analysing the external factors that may present opportunities or threats to a business. These are all generally considered to be outside the control of the business although many, business will go to great lengths to try and control them. The Pestel analysis particularly identifies key dangers that are taking place which influence the organisation in the future. The acronym stands for: Political Economic Social Technological Environment Legal Political The political factors that may affect a business may include a) War b) IRA attacks c) Elections d) Privatisation policy e) Influence of the EU 'harmonisation' - Encourages competition - market should work more efficiently f) Compliance - More willing to abolish paper work to government (red tape) - Competitive law - Labour law - Product standards - Environmental law - Planning law Nike is not likely to be affected by any political factors apart from war. As a war will affect what people buy and spend their money on. As people will want to save all the money that they can so they won't want to spend their money on luxury items such as a pair of trainers. An election might also affect Nike as the Lib Dems and the Labour party are for raising taxes. ...read more.

Middle

If income rises it will mean that people will have more money to spend on luxury items, which will be good for Nike, as all of Nikes products are considered luxury items because they are not essentials for every day living But if incomes does rise it will also mean that Nike will need to increase the wages of their employees, which then means that the cost of production will increase, which may lead to the cost of the products rising. Social The social factors that may affect businesses a) Population changes (demographics) b) Trends which affect social class e.g. education c) Changes in social attitudes d) Cultural preferences e.g. animal welfare, vegetarianism e) Health issues f) Changes in structure of labour market g) Black economy - black market If the population rises then it will mean that there are more people that could be potentional buyers of Nike products, which could lead to a higher profit margin. If the population decreases then it may lead to fewer consumers of Nike products, which could potentially decrease the profits. The black market is quite a high treat to Nike. The black market sells branded products at half the price of the brand. ...read more.

Conclusion

Minimum wage b) Health and safety c) Redundancy d) Equal opportunities e) Trade unions f) Un fair dismissal g) Working time directions - EU law h) Paternal laws Nike are restricted by certain laws to say what they can and can't do. There are many laws that protect the consumer against faulty or bad products. All products that Nike sell in the U.K must meet the BSI (British Standards Institution), which is shown on all products with a small logo known as the kite, mark. If a product shows the ISO (International Standards Organisation) symbol it means that it is of good quality and has reached the standards required. If Nike advertise any one of their products they must not state anything that is not true, they also must not say anything that could be a disadvantage to one of there competitors. Nike must trade with fair competition. There are also a lot of laws about employment. All employees that are over the age of 18 must be paid at least the minimum wage. The minimum wage is set by the cost of living in the area around the business. Nike must employee an equal amount of males and females. A percentage of the work force must also be from different ethnic backgrounds and another percentage must be of people with a disability. This is to ensure equal opportunities. Marketing E2 December 02 ...read more.

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