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PEST
model (
Section 
1
). The PEST model is drawn out into its component 
elements in 
Sections 2 to 10
, which cover legal aspects 
(employment legislation, data protection and health and 
safety), social and cultural trends, the impact of 
technology on organisations and environmental factors. 
External competitive forces, as identified by Michael 
Porter, are covered in 
Sections 11 and 13
. 
The internal capabilities of the organisation are analysed 
in the value chain framework (
Section 12
). While the 
value chain has an internal rather than an external focus, 
it is included in this chapter as a method of improving a 
company's competitive position in the wider market.
BPP Tutor Toolkit Copy

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PART A: THE BUSINESS ORGANISATION, ITS STAKEHOLDERS AND THE EXTERNAL ENVIRONMENT 
 
20
 
Study Guide 
Intellectual level
 
A3 Political and legal factors affecting business 
 
 
(a) Explain how the political system and government policy affect 
the organisation. 
K 
(b) Describe the sources of legal authority, including supra-
national bodies, national and regional governments. 
K 
(c) Explain how the law protects the employee and the 
implications of employment legislation for the manager and 
the organisation. 
K 
(d) Identify the principles of data protection and security. 
K 
(e) Explain how the law promotes and protects health and safety 
in the workplace. 
K 
(f) Recognise the responsibility of the individual and organisation 
for compliance with laws on data protection, security and 
health and safety. 
K 
(g) Outline principles of consumer protection, such as sale of 
goods and simple contract. 
K