1. Impact and Consequences
Internal factors
Impact and Consequences

2. These are factors within the business which can have an impact
Management
Financial
Employees
Existing
Technology

3. Financial – there may not be enough money to make purchases
Impact – unable to buy material and production/sales stop
Consequence – orders not met, customers unhappy, revenue/profits drop
Add another impact/consequence of your own

4. Employees – have the correct staff with the right skills and qualities
Impact – if staff don’t have the right skills
their work will be of poor quality
Consequence – customers will complain about the product quality or might not buy it
Add another impact/consequence of your own

5. Management – manager may not have enough experience or skill in decision making
Impact – this could lead to the wrong
decisions being made
Consequence – loss of business (sales/customers/profit)
Add another impact/consequence of your own

6. Existing Technology – is the technology used the best available or suitable for the task at hand
Impact – out-of-date technology could be
ineffective or break down
Consequence – failure to complete task, fall behind competitors
Add another impact/consequence of your own

7. Corporate Culture
This can be defined as “the values, beliefs, traditions and norms related to the organisation that is shared by all its members” It is often called "the character of an organisation“. It influences the ethical standards and behaviour within an organisation.

8. Benefits of a strong corporate culture
Improving/developing corporate culture
Employees feel they belong – motivating
Creates positive relationships – better communication
Customer loyalty – they identify with the organisation
Consistency across the organisation
Listening to the opinions of employees
Training new/existing staff – particularly when introducing new procedures
Design of the premises, logos and uniforms
Having policies and procedures in place – stating what is expected
Summary clip

9. External factors

10. An external influence is something that will affect your business but that you have no control over.
To look at external influences PESTEC analysis is used.
It helps understand the position, potential and direction for a business.

11. TECHNOLOGICAL POLITICAL ECONOMIC SOCIOCULTURAL ENVIRONMENTAL
COMPETITION
Handout

12. Political Health and safety laws Employment laws Consumer protection
Environmental protection
Competition laws

13. Economic
Inflation
Unemployment
Interest rates
Value of £
Recession

14. Socio-cultural (Social)
Demographics
Changing trends and tastes
Changing working patterns
Ethical issues

15. Technological Communication Production methods New product development
Methods of working

16. Environmental Weather Recycling of used products Pressure groups
Disposal of industrial waste

17. Competition Product range Pricing Production methods Technology used
Tasks