Tax, unemployment and PESTLE
Introduced| English | Meaning |
|---|---|
| taxation/tækˈseɪʃn/ | The collection of compulsory payments by government from individuals or organisations. |
| unemployment/ʌnemˈplɔɪmənt/ | The state of being without work while willing and available to work and actively seeking a job. |
| VAT/ˌviː eɪ ˈtiː/ | VAT |
| threats/θrets/ | External conditions or developments that could harm an organisation's performance or objectives. |
| opportunities/ɒpəˈtjuːnɪtiz/ | External conditions or developments that an organisation could use to achieve its objectives. |
| emissions/ɪˈmɪʃnz/ | Substances or energy released from a source into the surrounding environment. |
| globalisation/ˌɡləʊbəlaɪˈzeɪʃn/ | The increasing connections and interdependence between countries through trade, investment, communication and other flows. |
| anticipate/ænˈtɪsɪpeɪt/ | To recognise or expect something before it happens and consider its likely effects. |
| adapt/əˈdæpt/ | To change an approach, activity or arrangement to suit new conditions. |
Government, society and the law
- Beyond the economy, a business is shaped by taxes, employment levels, laws, technology and society.
- A useful checklist for all of this is PESTLE.
External influences lab
Classify outside changes by the channel that hits the business.
A rise in the tax on company profits is likely to:
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Higher profit tax leaves the firm with less.
For a business, high unemployment usually means:
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Demand falls, but labour is more available and cheaper.
Taxation 税收 and unemployment 失业
- Higher taxes (on profit, or VAT 增值税) cut profit and consumer spending.
- High unemployment means weaker demand but an easier, cheaper supply of labour.
PESTLE: six external forces acting on a business
Which letters of PESTLE are correctly matched? (Select all that apply.)
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T stands for Technological, not Taxation.
In PESTLE, the letter S stands for ______.
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PESTLE = Political, Economic, Social, Technological, Legal, Environmental.
The PESTLE framework
- Political, Economic, Social, Technological, Legal, Environmental.
- It is a structured way to scan the external environment for threats 威胁 and opportunities 机会.
Worked example. A delivery firm scans PESTLE: new emissions 排放 laws (Legal/Environmental), electric-van technology (Technological), and a rise in online shopping (Social) — together pointing to investing in an electric fleet.
Stacked shipping containers: globalisation 全球化 lets firms trade and produce worldwide
PESTLE factors are part of the external environment that a firm cannot directly control.
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Firms can anticipate and adapt, but not control them.
Responding to external change
- Firms can't control PESTLE factors, but they can anticipate 预见 and adapt 调整.
- Good strategy turns external threats into opportunities.
Higher interest rates raise borrowing costs and cut spending
You've got it
- higher taxes cut profit and spending; high unemployment weakens demand but eases hiring
- PESTLE = Political, Economic, Social, Technological, Legal, Environmental
- firms can't control these but can anticipate and adapt
Write from unemployment of 11 percent
- Unemployment rises from 5 percent to 11 percent.
- Give one benefit and one cost of that change for a firm.
Unemployment rises from 5 percent to 11 percent. What is the rise in percentage points, and what is one likely benefit and one likely cost for a firm hiring and selling locally?
11 minus 5 is 6. More job seekers and less spending can arrive together.
By how many percentage points did unemployment rise?
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The new unemployment rate minus the old one is 6 percentage points. Other options — 11 percentage points (the new rate); 5 percentage points (the old rate).