Unit 7 · Revision notes
External Environment — NCFE Business & Enterprise revision notes
Content area 7 covers the impact of the external environment on business and enterprise and on its stakeholders. You need to understand seven external influences: taxation (VAT, income tax and corporation tax), economics (GDP, interest rates, employment levels, availability of skills and the minimum wage), legislation, social factors such as fashion and trends, technological change, environmental factors including climate change, and the competitive environment.
Content area 7: The impact of the external environment on business and enterprise
Taxation
External Influences on Business and Enterprise include taxes that businesses are required to pay. These taxes have a significant impact not only on the…
~3 min readEconomics
Gross Domestic Product (GDP) GDP is a measure of the economy in monetary value. It is a snapshot or capture of the economy at a given time. It is used to…
~5 min readLegislation
Changes to legislation (laws) can have a positive or negative impact on businesses. Employment Legislation Employment legislation governs the relationship…
~2 min readSocial
Changes in Fashions and Trends Businesses need to keep an eye of what is happening in terms of fashion and trends in the external environment. A trend is…
~2 min readTechnology
In today's fast-paced world, technological advancements are a driving force that shapes the business landscape. Technology is frequently updated and…
~3 min readEnvironmental
Business Impact on Climate Change Businesses play a significant role in shaping climate change through their operations, decisions, and practices. The…
~2 min readCompetitive Environment
An important external influence that businesses must navigate is the competitive environment. This is the number of companies that operate within the same…
~1 min readThe rest of the course
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