Topic 1.3 PESTEL Factors and the Business Environment · pipeline build
Bean & Brew Mina P minimum wage ↑ E oat milk price ↑ L calorie-label law T dorm delivery app none of it came from inside the shop the environment a business does NOT control Topic 1.3 PESTEL Factors and the Business Environment PESTEL = the six factors that shape which businesses are viable P Political E Economic S Social T Technological E Environmental L Legal P Political E Economic S Social T Technological E Environmental L Legal trade policy · taxes & subsidies · mandates · bans · stability SUBSIDY / MANDATE → pushes activity UP BAN / TAX → pushes activity DOWN sugar tax: sweet drinks cost more → less sold exam cue: government encourages or discourages → POLITICAL P Political E Economic S Social T Technological E Environmental L Legal ECONOMIC: stability · income · inflation · unemployment · interest rates income inflation unemployment interest stability → how much consumers, businesses, government SPEND fancy café boom: thrives $1 coffee cart downturn: thrives some businesses WIN in a weak economy — ask who gains P Political E Economic S Social T Technological E Environmental L Legal SOCIAL: demographics · cultural norms · lifestyle trends · population growth consumer business viability = meeting needs & wants and those come from WHO the customers are oat milk: niche → normal Mina adds oat milk population growing → more customers exam cue: change in the PEOPLE (age · values · habits · numbers) → SOCIAL P Political E Economic S Social T Technological E Environmental L Legal TECHNOLOGICAL: internet access · automation · rate of innovation ⚙️ PRODUCING 🚚 DISTRIBUTING 💬 COMMUNICATING delivery app → distribution changes overnight auto espresso → faster, fewer baristas no internet → some businesses impossible exam: can the business keep up? does new tech open a door for a rival? pause & check the first four letters P Political E Economic S Social T Technological E Environmental L Legal ENVIRONMENTAL: geography · resources · waste policy · consumers’ green views 1 · the physical side 🌵 drought → bean cost ↑ 🌀 hurricane → port closed 2 · the customer side students prefer cafés that compost & skip plastic a buying decision — still ENVIRONMENTAL recycling LAW = legal · customer who WANTS recycling = environmental P Political E Economic S Social T Technological E Environmental L Legal LEGAL: employment · consumer protection · health & safety · environment · IP · antitrust changes OPERATING COSTS can make operations ILLEGAL min wage ↑ → labor cost ↑ food-safety rule → training time patent law → protects her syrup recipe (or stops her copying) CAREERS: jobs in a place = which businesses are viable there = PESTEL downturn → layoffs new factory → hiring product ban → jobs end exam can ask from the worker’s side, not just the owner’s Mina: open a second shop in Riverside? list relevant factors → score attractiveness & risk for YOUR product P small-business grant + E lower income, higher unemployment − S young & growing population + T delivery app already there ± E location floods every few years risk L separate food license cost an honest picture instead of a hunch enter where PESTEL fits your model: resources · production · customers tech company → cheap internet & power farm-to-table → customers who want local food factors CHANGE: any letter can flip viability P · policies: subsidy/mandate up, ban/tax down E · income · inflation · unemployment · rates S · demographics · norms · trends · population T · internet · automation · innovation E · climate · resources · disasters · green views L · laws that change costs or legality PESTEL also sets which jobs exist where traps: environmental vs legal · economic vs social Business Canvas · Task 2 Run PESTEL on your market: one line per letter, + or −
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PAUSE & CHECK A city council votes to give a $5,000 grant to any restaurant that installs an electric kitchen instead of a gas one. For a restaurant deciding whether to open there, this is best classified as which PESTEL factor?
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Pilot v2. Timing is estimated from narration length (145 wpm); the final video uses an ElevenLabs English voice recorded from the performance script (energy, pauses, emphasis), and scene timing then follows the real audio. The browser voice here is only a placeholder for pacing — it cannot act. Other-language audio is a customer-selected option; English is the default. Dollar figures in Scenes 6–7 are illustrative. No logos used.