1. BTEC Level 3 Business
Unit 1 Assignment 2 – P6, M3, D2

2. Political Factors
Changes take place in a business because of political decisions made by the government.
Political Stability
Government Support
Taxation
Direct Support
Enhancing skills of the population
Membership to international trading.

3. Economical Factors
How is the economy at the moment and how is it likely to move?
The business cycle- recession, boom, growth
GDP
Interest rates
Exchange rates

4. Social Factors
Changes in social trends, what does society look like today?
Ageing population
Internet
Cash rich time poor
Willingness to work
Demographic issues
Changes in structure
Household and families
Education
Attitude to work
Religion
Attitude to male and female roles
Ethics.

5. Technological factors
What new technologies have evolved and are likely to evolve?
Innovation
New product development
Rate of technological change

6. Legal Factors Businesses must operate within the framework of the law.
Protecting Employees
Consumer Protection
Employment Law
Fair Trading
Competition laws
Health and Safety laws
Employment laws

7. Environmental What is happening in the environment? Global warming
Environmental issues
Recycling
Carbon Emissions
Packaging

8. P6-
Produce a table to show how Political, Social and Legal Factors and the impact on business activity and stakeholders
PESTLE Factor
Affect on business activities
Affect on Stakeholders
Political
Tax- tax will affect any business because it impacts on the amount of profit which is made. Businesses will need to pay tax on the items they purchase and sometimes will pass this on to the consumer
Employees- Wages may not increase as much as the business does not want to reduce their profits, reduced overtime and training
Customers -
Shareholders-
Social
Legal

9. M3- Impact on the business
To reach M3 you need to add a column/ explanation to each of your tables.
Explain the action that both business will have to take.
E.g. Increase in minimum wage- this means____ will need to ensure they are paying employees sufficiently, this could mean that they need to increase the wages of staff, to deal with this increase they could absorb the cost (reduce profits) or pass the cost onto the customer, this would mean increase the prices that they charge to their customers.

10. D2- Evaluate future changes
For ONE businesses you need to consider the future changes that may occur- what could happen and what affects would this have on the business.
You should divide this section into political, social and legal factors.