P - political - government policy, the degree of intervention in the economy. What goods and services does a government want to provide?
E - Economic - For example - higher interest rates may deter investment because it costs more to borrow.
S - social - In the UK, for example, the population has been ageing. This has increased the costs for firms who are committed to pension payments for their employees because their staff are living longer.
T - technological - MP3 players, computer games, online gambling and high definition TVs are all new markets created by technological advances
E -environmental - the weather and climate change. Changes in temperature can impact on many industries including farming, tourism and insurance
L - legal/legislation - the legal environment in which firms operate, eg. age + disability discrimination, min wage = recent laws affecting business.
Comments
No comments have yet been made