external factors effecting BT

Mind Map by bonh01, updated more than 1 year ago


i used these to gather my information for my mind map

Resource summary

external factors effecting BT
1 Political
1.1 Political stability
1.1.1 Change in government in the UK This could effect BT by a substantial amount. This is so because is a new government was elected and puts higher corporation taxes, then BT will have to set more money aside to pay these taxes leading to lower profit.
1.2 Transport and internet availability
1.2.1 UK If the government decide to increase internet availability this means that there will be more users so there would be a increase in demand for BT so will have a positive impact as there will be more users
1.2.2 India This is the same as the UK but because india has such a high population which means that if internet availability is increased then there will be a massive increase in demand so companies such as BT will thrive. This might not be straight away because a large majority of the population is in high levels of poverty
1.3 Availability of education, training and research
1.3.1 UK Availability to education is relatively easy in the UK which means that alot of the population are well educated and are there for more qualified which means that they are able to do there jobs to a better standard and so they bringing ore money into the company.
1.3.2 India India is a BRIC country which means that it is still very under developed but it is starting to develop. Due to this the literacy rate is still low which means that a majority of the population are under qualified and not trained to to there profession. This means that companies such as BT are not making there maximum profits.
1.4 impact on recruitment of staff
1.4.1 UK and India When BT is recruiting it employees it is very important that its employees meet all the requirements needs. This is so because it needs to maximise its profits and it would not be able to do this if the employees are under qualified
2 Legal
2.1 company law
2.1.1 Uk In the UK laws for businesses are very strict and if not followed properly then companies are in risk of being shut down. So it is important that BT follows these laws.
2.1.2 the laws in india are less because the country is the developing stage there for things are easier to do cheaper like transport
2.2 Contract law
2.2.1 in the uk there is a strict law system in place therefor organisations are regulated to what they do making it harder for the company to do things cheaply
2.2.2 there is a contract law based on the english on, though the regulations are less strict so the company can combat these easier so there is less effect on income etc
2.3 customer protection
2.3.1 uk there are things such as financial laws meaning that bt can't do an absolute maximum price as it has to work in the best interest of the consumer therefor can't get an absolute max income
2.3.2 india as in many other of the laws they are looser in the indian case meaning bt is less effected and can charge a higher price than if under strict guides
2.4 employment law
2.4.1 in the uk the employment laws are very strict meaning that when recruiting staff bt must be careful to choose well, hige wages and working condition standards mean that much income is set aside for this
2.4.2 in india are looser meaning staff can be paid a lot less than in more developed countries meaning less has to be set aside to this issue so more can be on things like development of products
3 Socail
3.1 changes in education
3.1.1 the standards are ever changing for the better meaning the work force is better, the richer people also due to higher education meanderer product is bought
3.1.2 the continuos high standard means changes are only for the better in the UK stricter ofstead etc. mean that bt gain through better staff etc
3.2 an ageing population
3.2.1 The UK has a very high ageing population which mean that in order for them for BT to maximise there profits they need to develop there products to suit the elderly which they can understand and use with out hassle
3.2.2 India is not have this problem because India has a rapidly increasing population which will make it bottom have and so will not need to focus on the elderly but when it starts to develop more as a country and both rates drop then BT will have to also do the same as the uk
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