Business Essay

2231 WordsMar 9, 20149 Pages
Task Two Section A: Economic Factors Introduction External influences are things that affect a business, but out if its control, either positive or negative. The businesses cannot control the factors, but they can plan for them. A SLEPT (Social, Legal, Economic, Political, Technological) study is often carried out by business planners which lets them develop more educated strategies (i.e. long term plans). If this does not happen to Olchfa, e.g. the recession, people will not have enough income to stay in the area that they are living in so they may want, or need, to move to another area that is cheaper to live in. This means that the pupil/s will also have to move away from one to another school, which may not be as good academically as their previous school. ------------------------------------------------- ------------------------------------------------- Social factors The social factors relate to change in society and social structures. Changes in the make-up of the population, and in consumer lifestyles and behaviour affect buying patterns, in this case, where pupils study. ------------------------------------------------- Economic factors ------------------------------------------------- This relates to changes in the wider economy. A growing economy provides greater opportunities for businesses to make profits, so businesses welcome rising living standards. However, Olchfa and other public schools don’t operate to make profits, so this only affects the students. ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- Political factors This relates to ways in which changes in government and government policy can influence business. For example, the government could introduce a law saying that schools must stay open an extra hour every

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