Be able to demonstrate knowledge of how PEST influences business behaviour.

Assignment Brief

MODULE TITLE:  Business Environment

The Learning Outcomes for Business Environment are as follows:

Knowledge & Understanding

Students will be able to demonstrate knowledge of how PEST (the political, economic, social and technological environment) influences business behaviour. Knowledge of PEST will be reinforced by application to real life events. Students will be made aware of how PEST contributes to the continuous development of personal learning. To reinforce students’ understanding and application of PEST through engagement with deeper learning techniques.

Cognitive & Intellectual Skills

Students will be able to employ arguments which are balanced, logical and supported by contemporary theory and up-to-date data.

Practical & Professional Skills 

Students will be able to innovatively apply their knowledge and logical skills to a range of complex situations for a range of scenarios and cases.

Key Transferable Skills

Students will be able to prepare written reports, and presentations.

Sample Answer

Evaluate the impact of the changing age structure of the population on the UK economy

Introduction

The age structure of a population refers to the number of people in different age groups, such as children, working-age adults, and older people. In the UK, people are living longer and having fewer children, which means there are more older people and fewer young people. This change in population structure has major effects on the UK economy. This essay will evaluate how the ageing population affects the economy, using the PEST framework (Political, Economic, Social, and Technological), along with real-life examples and statistics.

Economic Impacts

As the population ages, more people retire and fewer are working. This means:

• Labour shortages: There may not be enough young people to replace those retiring, leading to gaps in sectors like healthcare, construction, and transport.

• Increased government spending: The government must spend more on pensions, healthcare, and social care for older people.

• Lower tax income: With fewer people working, the government collects less income tax and National Insurance.

• Economic growth may slow down: As the working population shrinks, productivity may drop, affecting overall growth.

For example, the Office for National Statistics (2023) reports that around 19% of the UK population is aged 65 or over, and this is expected to rise to 24% by 2043.

Political Impacts

• Policy changes: The government may need to raise the retirement age or change pension rules to deal with budget pressures.

• Public debate: Political debates may arise around funding for the NHS, care homes, and pension reforms.

• Immigration policies: To fill job shortages, the government might encourage skilled immigration, which can be politically controversial.

Social Impacts

• Pressure on healthcare services: Older people often need more healthcare, increasing demand for the NHS.

• Changes in family roles: More people may need to care for elderly family members, which can affect their ability to work.

• Intergenerational tension: Younger people may feel they are paying more taxes for benefits that mostly help the older generation.