Political: The government could increase National Minimum Wage which organisations will have higher wage costs, The government could introduce environmental protection laws and if organisations comply, they will improve their image and attract more customers, The government could raise VAT which will increase the selling price of products which may reduce sales thus profit, Economic: If there is a boom, business can take advantage of consumer wealth and increase prices which will generate more profit, If there is a recession, there will be falling demand for products and services which may result in the staff having to cut costs such as making redundancies, If the value of the pound is high compared to foreign currencies, UK exporters will struggle to sell their product and sales may fall, Social: As a result of flexible working practices, employees have a better work-life balance which means employees may be more productive when they work, UK has an ageing population which means businesses must carry out extensive market research which costs time and money, More women in work means there are more women taking maternity leave which means the business may have to spend more on recruiting and training staff, Technological: Having a social media presence enables organisations to keep in touch with customers and helps raise their profile on a worldwide market, Using Cloud storage will allow the organisation to save money on their own IT hardware, Organisations providing a free wi-fi service to customers is likely to attract more customers who wish to use their business for business or personal reasons, Environmental: Extreme weather conditions may affect transport networks which may increase the lead and result in production being slower, Organisations need to undertake recycling but it takes time and resources to do this, Organisations should try to reduce their carbon footprint which means there may be a significantly high cost associated with it, Competitive: Competition improves a market as it brings more choice and keeps prices low for customers, Competition could lower prices to undercut others which will reduce profits of the business trying to keep up, Competitors may launch improved products which means the business will have to spend time researching and developing something similar ,

External factors

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