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Business unit 7 - Coggle Diagram

- - - - PESTLEC
        
        Political:
        The political component of PESTLE analysis examines how government actions and political events influence business operations and strategic decisions. Understanding these factors helps businesses navigate potential risks such as new legislation and seize opportunities within their political environment such as the creation of new infrastructure (HS2).
        
        Environment:
        This links heavily to legal as most businesses only act with environmental concerns due to the laws set. One of these laws is the environmental protection act which aims to prevent against air and water pollution as well as harmful waste disposal. Some businesses may wish to act environmentally to increase brand image however which is an opportuntity
        
        Legal:
        The legal component of PESTLE analysis examines the impact of laws and regulations on business operations and decision-making. Understanding these factors helps businesses ensure compliance, avoid legal disputes, and operate smoothly within the legal framework of their environment. If businesses fail to comply with new standards, it could limit competition, damage the businesses reputation, or worse - for example, it could severely damage a company's publicity if they are seen to be non-compliant with legislation. One legislation that affects businesses is the competition policy which prevents the formation of cartels which could harm consumers.
        
        Economic:
        The economic environment includes several economic variables such as GDP, inflation, unemployment, and consumer confidence. Governments use a range of policies to influence economic activity. This economic change creates many OPPORTUNITIES, but also THREATS to businesses. Economic changes will inevitably have an impact on the strategic and functional decisions that businesses make. One opportunity could include a fall in interest rates which would mean that taking out loans would be cheaper. A threat could include during a recession there would be a significant decline in sales
        
        Technology:
        Technological changes and innovation can present opportunities and threats for companies
        
        Competition