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C1 PEST analysis GapFill
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Enterprises are affected by changes that occur in the business environment. They have no control over these, but have to react appropriately. Political, economic, social and technological analysis, known as helps enterprises decide on the action they should take. A political change that affects both businesses and customers is increase in . A business may find itself paying more tax, which reduces its . A reaction might be to increase prices, but as the customers are also paying more tax, they have less to spend.
Borrowing may become more expensive due to an increase in . An entrepreneur may decide not to invest in new machinery this year, but until next year. The business selling the machinery doesn't make a sale and may have to consider reducing their in order to attract customers.
Customer behaviour changes over time. Businesses that sell fashionable clothing have to be aware of changing and take care not to be left with stock they cannot sell. Customers are increasingly aware of waste, so businesses may ensure their is recyclable, and that they use the smallest amount possible.
Technological change offers many advantages to smaller businesses. They can sell products and reach customers who could not visit them in person. Businesses offering services can take advantage of technology to book which may include an automated reminder to the customer.