Tax, unemployment and PESTLE
| English | Chinese | Pinyin |
|---|---|---|
| taxation | 税收 | shuì shōu |
| unemployment | 失业 | shī yè |
| VAT | 增值税 | zēng zhí shuì |
| threats | 威胁 | wēi xié |
| opportunities | 机会 | jī huì |
| emissions | 排放 | pái fàng |
| globalisation | 全球化 | quán qiú huà |
| anticipate | 预见 | yù jiàn |
| adapt | 调整 | tiáo zhěng |
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:
Higher profit tax leaves the firm with less.
For a business, high unemployment usually means:
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.)
T stands for Technological, not Taxation.
In PESTLE, the letter S stands for ______.
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.
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