PEST Analysis
What does the "P" in PEST stand for?
Political
Are employee skills an internal or external factor?
Internal factor
What is a competitor?
A business that sells similar products or services and competes for customers.
What is a business trend?
A general direction of change occurring over time.
What is the main purpose of a business?
To provide goods and/or services to customers while generating a profit.
Which PEST factor includes interest rates, inflation, and unemployment?
Economic
Is a new competitor entering the market an internal or external factor?
External factor
What is a direct competitor?
A business that sells the same or very similar products/services to the same target market.
What is a relationship in business data?
A connection between two variables or factors.
What is a stakeholder?
Any individual or group that has an interest in or is affected by the business and its activities.
A government introduces a new tax on sugary drinks. Which PEST factor is this?
Political
Name one internal factor that can affect business performance.
Examples: staff, management, finance, business culture, resources, technology.
What is an indirect competitor?
A business that satisfies the same customer need using a different product or service.
Online shopping has increased every year for the last decade. Is this a relationship or a trend?
Trend
Name two stakeholders of a business.
Any two of: owners, managers, employees, customers, suppliers, investors, government, local community.
Consumers are increasingly choosing environmentally friendly products. Which PEST factor does this represent?
Social (Socio-cultural)
A business experiences declining sales because customers have less disposable income. Is this caused by an internal or external factor?
External factor
Give one example of a direct competitor for McDonald's.
Examples: Burger King, Hungry Jack's, KFC.
Sales increase whenever advertising expenditure increases. Is this a relationship or a trend?
Relationship
Why is stakeholder satisfaction important for business success?
Satisfied stakeholders are more likely to support the business through purchases, investment, productivity, loyalty, or positive reputation.
A café installs AI-powered ordering kiosks to improve efficiency. Which PEST factor is influencing this change?
Technological
Explain the difference between an internal and external factor.
Internal factors are within the business's control, while external factors occur outside the business and cannot be directly controlled.
A cinema competes with Netflix for consumers' leisure spending. Is Netflix a direct or indirect competitor?
Indirect competitor
Explain the difference between a relationship and a trend.
A trend shows a pattern of change over time, while a relationship shows how two variables are connected or influence each other.
A business notices that customers want faster delivery, employees want higher wages, and owners want greater profits. Explain why balancing stakeholder interests can be challenging.
Stakeholders often have competing interests. Actions that benefit one stakeholder group may negatively affect another, so businesses must make decisions that balance these needs while remaining sustainable and profitable.