Pest Analysis
An organisation’s success is influenced by factors operatingin it’s internal and external environment; an organisationcan increase it’s success by adopting strategies whichmanipulate these factors to it’s advantage. A successfulorganisation will not only understand existing factors butalso forecast change, so that it can take advantage of changewithin the environments in which it operates.PEST analysis is used to identify the external forces affectingan organisation .This is a simple analysis of an organisation’sPolitical, Economical, Social and Technological environment.A PEST analysis incorporating legal and environmentalfactors is called a PESTLE analysis.
3. P for POLITICAL FACTORS E for ECONOMIC FACTORS S for SOCIAL FACTORS T for TECHNOLOGICAL FACTORS
4. Legislation such as the minimum wage or anti discrimination laws. Voluntary codes and practices Market regulations Trade agreements, tariffs or restrictions Tax levies and tax breaks Type of government regime eg communist, democratic, dictatorship
5. Home economy situation and trends Overseas economies and trends General taxation issues Market routes and distribution trends Interest and exchange rates International trade/monetary issues
6. Lifestyle trends Demographics Consumer attitudes and opinions Brand, company, technology image Consumer buying patterns Fashion and role models Ethnic/religious factors Advertising and publicity Ethical issues
7. Competing technology development Associated/dependent technologies Replacement technology/solutions Manufacturing maturity and capacity Information and communications Technology access, licencing, patents Consumer buying mechanisms/technology
8. • Health and Safety Guidelines fast food consumption has been shown to increase calorie intake, promote weight gain and elevate risk for diabetes criticised for caloric content, trans fats and portion sizes Ecological/environmental issue one of the largest consumers of paper
3. P for POLITICAL FACTORS E for ECONOMIC FACTORS S for SOCIAL FACTORS T for TECHNOLOGICAL FACTORS
4. Legislation such as the minimum wage or anti discrimination laws. Voluntary codes and practices Market regulations Trade agreements, tariffs or restrictions Tax levies and tax breaks Type of government regime eg communist, democratic, dictatorship
5. Home economy situation and trends Overseas economies and trends General taxation issues Market routes and distribution trends Interest and exchange rates International trade/monetary issues
6. Lifestyle trends Demographics Consumer attitudes and opinions Brand, company, technology image Consumer buying patterns Fashion and role models Ethnic/religious factors Advertising and publicity Ethical issues
7. Competing technology development Associated/dependent technologies Replacement technology/solutions Manufacturing maturity and capacity Information and communications Technology access, licencing, patents Consumer buying mechanisms/technology
8. • Health and Safety Guidelines fast food consumption has been shown to increase calorie intake, promote weight gain and elevate risk for diabetes criticised for caloric content, trans fats and portion sizes Ecological/environmental issue one of the largest consumers of paper