PESTEC

Political factors: new legislation can restrict the sales on a particular item therefore affecting the sales of that particular product. For example: Age restrictions for sales of alcohol and working hours, minimum wage which would affect their profit

Economical factors: the state of the ecomony can affect the sales of an organisation, for example, people won't have as much money to spend in the economic downturn.

Social factors: Ethnicity , Religion , lifestyle, age, gender, if something goes out of fashion it will no longer sell & the company will have to develop a new product.

Technical factors: Internet would be effective as its easier to obtain goods from online and their website should be laid out efficiently and made easy to read, however, it is costly and time consuming to train emplyees how to use it. The computer hardware also needs updating regularly. Email is also good as it is fast and effective however, it is prone to viruses and may distract employees.

Enviromental Factors: Green campaigners can boycot the store to influence them to sell 'enviromentally friendly' products and threated to stop shopping their if needs are not met. Try and reduce transport costs to recuce pollution by allowing factories to be closer by. The company needs to make ethical decisions and not exploit the environment or their workforce.

Competitive: If competitors lower prices, Ikea will also have to lower prices to stay popular & this may reduce overall profits. Research may need to be done into developing a new product if other competitors bring out a more pupular & renewed product.