PEST-you see how important is it to business

explain how these factors might affect your business.
1. environment regulation or consumer protection.
2. inflation
3. age of the population
4. increased automation.
  Political and legal constraints

- Consumer protection Law: constrain businesses from advertising inaccurately or inappropriately, selling faulty goods or those described incorrectly, high pressure selling tactics, not allowing consumers to change their minds after signing credits agreements.
    This law is here for protect the right for consumers, also it is for monitor business companies.
    once customers found out they got cheat by some products, then it is the law to help they get justices.
     once a company being found out cheating on their clients/ consumers, they will hardly to get some trust.
   anyway, a business can not survive without any relationship with their consumers.

 
       For example : some people likes to buy stuff online, on ebay, or alibaba. because it could be way much cheaper. But sometimes consumers dont realize that some online websites are giving the wrong information for misleading, after they ordered, and within 7days freeshipping, they might get a totally different products, or some products are not same quality as it suppose be.   So they ask for refund, then they has to pay the shipping tax back to the orginal country. in the end, they got nothing but lossing money. because they didnt know how to protect their right!  ( copy right from BBC)
     also, it is bad for business, because that consumer will never buy anything from that business, also people around that consumer will not trust the business, then it start to lose profit.

 ECONOMIC INFLUENCES.

- Inflation : the rate of change in the average level of prices.
   
     Money loses purchasing power during inflationary periods since each unit of currency buys progressively fewer goods. As a international company, currency rate is really affect able for the total revenue of a company.  When one of the currency drop or increase


Example :  recently the currency euro has dropped rapidly,  it has been a grand strike to some foreign trades like China. Before euro has drop, the rate between RBM and euro was 10:1.  some trade companies can make profits between this little inflation. But now it is 8:1.euro dropping so much, that caused many Chinese factories and company closed down, because they are not easy to raise up the price to sell, either the product from factory in china are also getting expensive. 


SOCIAL AND CULTURAL INFLUENCES

-Age of the population :with reduce birth rated and longer expectancy, although in some nations the average age is falling due to high birth rate.
   it could affect a company by :

•    a larger proportion of the population over the age of retirement. 
• a smaller proportion of the population in lower age ranges eg. 0-16 years
• it would cause a smaller number of workers in the economy but a larger number of dependants, that is below working age or retired

TECHNOLOGY

 - Increased automation- technological change is affecting all businesses and all departments within business. 

           As the technology age coming by, the factory life has been changed totally. 

          products can be more effective produced. 

        its could be a good and bad thing for business.

     first of all, company doesnt need much employee to do work because they machines, it also cost money to buy machines.

       it can also affect the whole economy process. because once the tech get too useful, not much people will get jobs, then all folk in this world  could be in a stress of looking for jobs. because not much company are hiring employees anymore.