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Unit 8 P1

Satisfactory Essays

Reactive and proactive changes for external and internal factors can have a major impact on a business. Using the PEST acronym, there are four main factors that can influence the business:
- Political
- Economical
- Social
- Technology
Examples of influences are when Government makes changes to the law. By not following and adapting to the changes, can result in business closure or prison sentences. A business which is looking for improvements, will deliver the same service or product for less price. If the business is not cutting down the prices, it can lead to customers going elsewhere as well as when the organisation is not looking for innovation and for improving its products.

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