AP Business with Personal Finance Unit 1.3 (PESTEL factors)

Business Environment

The external conditions and forces that affect how businesses operate and compete.

Viability

A business's ability to operate successfully and sustainably over time.

Political Factors

Government actions, policies, and priorities that influence business activity.

Economic Factors

Conditions related to the overall performance of the economy that affect spending and business activity.

Social Factors

Cultural trends, demographics, and societal attitudes that influence consumer behavior.

Technological Factors

Changes in technology that affect production, distribution, communication, or innovation.

Environmental Factors

Natural conditions and environmental concerns that influence business operations and demand.

Legal Factors

Laws and regulations that businesses must follow.

Demographics

Statistical characteristics of a population such as age, income, education level, and location.

Automation

The use of technology to perform tasks with minimal human labor.

Intellectual Property

Legal protection for original ideas, inventions, and creative works.

What is the purpose of the PESTEL framework in business analysis?

To classify external forces into six categories that help businesses identify opportunities and evaluate market attractiveness.

What are the six categories of the PESTEL framework?

Political, Economic, Social, Technological, Environmental, and Legal factors.