...By Mashell Chapeyama PEST analysis Pest analysis is a way in which the organization evaluates how it would fare in the environment. With PEST the organization is evaluating critical factors that affect the organization. These factors are: political, economic, socio-cultural and political. This essay is going to discuss these four factors as they affect a company named Chipinge Banana Company, which is found in Zimbabwe. It is a company that specializes in growing and selling of Bananas. These bananas are sold in the country as well as other foreign markets, particularly Asia and Middle East. Political The political system is not stable. Usually there is uncertainty in relationship to land ownership. There is a threat that some farms may be taken by government for resettlement reason. Some countries do not want to do business with Zimbabwe because it has bad human rights record. Some workers may be displayed from work due to political violence. Currently, we are going towards elections which can turn to be violent. Zimbabwe has a very high taxation system in the world. One advantage is that Zimbabwe is part of free trade agreements such as comesa. Zimbabwe has many bilateral trade agreements with many countries. This means there are some favourable conditions in that we can sell some products to countries which trade well with Zimbabwe. Economic Zimbabwe has the advantage of using many currencies, including the pound, US dollars, the yen, the kwacha, and the rand...
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...Political Aspects HSBC Banking has been protected by the regulations and policies formulated by different government in the countries where they are operating. The company has been able to adhere to the policies given by each government to make sure that the company will be able to conduct business operations successfully and effectively. Furthermore, the company also formulates their own protection strategies against any governmental restrictions and limitations. Economic Aspect Being the world's largest and competitive industry in terms of banking and finance, HSBC, is said to have a stable and successful economic stability. In spite of many dangers that they encounter in different parts of the world, the management of HSBC sees to it that they would be able to surpass such struggles and strives to have a better economic condition. Social Aspect HSBC is being affected by the situation of the society in which they are operating. Along with this, HSBC tries harder to make sure that each society is given equal chances to take advantage of the resources given by the organisation. The company adheres to having good reputation and relations in the society that they belong. Technological Aspect The emergence of information technology and internet affects how HSBC has been operating in the past years. The company adopts different IT/IS systems and used internet to reach their customer all over the world and to know the latest trends in the global business...
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...Question 1 (a) i. Motorola Company ‘To be the leading product provider of innovative products that meets the expanding needs of customers around the world’ There are a lot of customers around the world, thus there’ll have different needs and wants demand by customers. Motorola would like to be the leading product provider. So, it has to be a product provider that can provide innovative products for all the customers in orders to fulfill what have been demand by the them. It can complete its tasks through the providing portfolio of technologies, solving method and services. ii. Honda Company "Maintaining a global viewpoint, we are dedicated to supplying products of the highest quality, yet at a reasonable price for worldwide customer satisfaction." Its mission statement is also known as their company principle. Honda company is trying to offer products at sensible price for customers in orders to fulfill customers’ contentment. It will offer the highest quality product in sequence to maintaining the global viewpoint. If the Honda management team works accordingly to the Management Policies it will definitely lead the company to achieve their mission in future. So, we now can see that Honda Company has a lot of brunches at all around the world in order to expand their business. iii. AirAsia “Create a globally recognized ASEAN brand” AirAsia provide the cheapest ticket that can let traveler travel to any Asian destination compare to other air line company. It is...
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...What is PEST Analysis? A PEST analysis is an analysis of the external macro-environment that affects all firms. P.E.S.T. is an acronym for the Political, Economic, Social, and Technological factors of the external macro-environment. Such external factors usually are beyond the firm's control and sometimes present themselves as threats. For this reason, some say that "pest" is an appropriate term for these factors. However, changes in the external environment also create new opportunities and the letters sometimes are rearranged to construct the more optimistic term of STEP analysis. Many macro-environmental factors are country-specific and a PEST analysis will need to be performed for all countries of interest. The following are examples of some of the factors that might be considered in a PEST analysis. It is very important that an organization considers its environment before beginning the marketing process. In fact, environmental analysis should be continuous and feed all aspects of planning. The organization's marketing environment is made up from: 1. The internal environment e.g. staff (or internal customers), office technology, wages and finance, etc. 2. The micro-environment e.g. our external customers, agents and distributors, suppliers, our competitors, etc. 3. The macro-environment e.g. Political (and legal) forces, Economic forces, Sociocultural forces, and Technological forces. These are known as PEST factors. Political Factors The political arena has...
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...PEST Analysis A scan of the external macro-environment in which the firm operates can be expressed in terms of the following factors: * Political * Economic * Social * Technological The acronym PEST (or sometimes rearranged as "STEP") is used to describe a framework for the analysis of these macroenvironmental factors. A PEST analysis fits into an overall environmental scan as shown in the following diagram: Environmental Scan | / | \ | External Analysis | Internal Analysis | / \ | | Macroenvironment | Microenvironment | | | | P.E.S.T. | | | | | Political Factors Political factors include government regulations and legal issues and define both formal and informal rules under which the firm must operate. Some examples include: * tax policy * employment laws * environmental regulations * trade restrictions and tariffs * political stability Economic Factors Economic factors affect the purchasing power of potential customers and the firm's cost of capital. The following are examples of factors in the macroeconomy: * economic growth * interest rates * exchange rates * inflation rate Social Factors Social factors include the demographic and cultural aspects of the external macroenvironment. These factors affect customer needs and the size of potential markets. Some social factors include: * health consciousness * population growth...
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...Environmental background- Every company uses a tool to check and track the environment they are operating. Walmart uses the PESTLE analysis, which sometimes reffered as PEST analysis, is a concept of marketing principles . Moreover, this comcept is used as a tool by companies to track the environment they are operating in or planning to launch new product or service. PESTLE is a mnemonic which expanded form donates to P-Political, E- Economic, S-Social, T- Technology, L-Legal, and E-Environmental. Let’s see the few below for Walmart- • Political and Legal Environment Walmart donates to the governor but at times it still faces some huge problems like- locking up the employees in store at night, fake sustainability displays, gender discrimination, labor union problems, etc. Till 1998 no steps has taken towards the political aspect and in 2006 it rises up as the No. 1 corporate political contributor. Unstable government also caused hindrance in the path of company expansion. For instance- Walmart was unable to expand in South Africa due to unstable and no proper direction government. • Economic Environment Fortune Magazine named Wal-Mart the nation's most admired company. It now has more revenue and more employees than any other U.S. company. Wal-Mart's growth over the last decade is unprecedented -- the company has gone from being a successful discount retailer to being a dominant force that no other retailer can ignore. When recession hits US, Walmart is one of the...
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...Company PEST Analysis History and Use PEST is a type of analysis used in strategic management which takes into account Political, Economic, Social and Technological (PEST) factors. The term "PEST" was first coined by Francis Aguilar in his 1967 book, "Scanning the Business Environment." The analysis also often includes Legal and Environmental factors, thus creating a PESTEL analysis. The "EL" was added by Liam Fahey and V.K. Narayanan in their book, "Macro-environmental Analysis in Strategic Management," published in 1986.Frequently combined with Michael E. Porter's Five Forces Model and Albert Humphrey's SWOT analysis, PESTLE analysis is a useful tool for understanding market demand/decline, current business positions and potential opportunities/obstacles. The factors it analyzes should not be considered solely at the company level. Rather, these external factors must be examined at a company, national and global level. Political Factors A business could flourish under one political entity, and be run out of business by another; as in additional taxes, regulations, or bans. This can be seen as the degree by which government legislation impacts the company. Some examples include tax policy, trade restrictions and tariffs. Less obvious examples include inter-country relationships, political trends, types of government, war, terrorism, treaties and currency. Economic Factors While closely related to political factors, the economic factors analyzed by PESTEL analysis focus more...
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...6-2 Final Project Milestone Three: PEST Analysis Wilhelmina Williams MBA 515 July 3, 2016 Dr. Jonathan Sturtz 6-2 Final Project Milestone Three: PEST Analysis A PEST Analysis is used to assess a business’ external factors. PEST stands for Political, Economic, Social, and Technological. The analysis will help to establish how the four elements will affect the behaviors and operation of the company in the long-term. The significance of the four sections means: • Political – Legal elements and government guidelines are evaluated for the ability that affects the trade markets and corporate environment. The relevant topics to address include tax guidelines, trade regulations, political stability, work laws, and safety regulations. • Economic – is examining the economic matters that develop an impact on the company. The factors contain interest rates, price increases, economic growth, commerce cycle the country follows, and unemployment rate and procedures. • Social – analyzing the socio-economic environment of the market through fundamentals of consumer demographics, lifestyle assertiveness, cultural limitations, and education. With this analysis, the company can identify the customer needs and determine what to bring to the market for purchasing. • Technological – whether it can negatively or positively impact the presentation of products and services to the marketplace. The issues include lifecycle of technologies, advancements, and the government spending for...
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...Assignment #1 Frequently Asked Questions Questions from this term From: Sent: Tuesday, January 26, 2010 11:28 AM To: Boyd, Colin Subject: Assignment #1 Hi, I was looking at assignment #1, in particular the SWOT analysis. Examples of it I found online were a combination of point form and paragraph. Is this alright if I formatted it like this? http://marketingteacher.com/SWOT/amazon_swot.htm Thanks in advance, Answer Hi : That web site seems more like paragraph form than point form. Point form should be avoided, if possible, because it is harder to read, and the writer usually has been a bit lazy. Being forced to write flowing paragraphs makes you think more about what you want to say. Colin ---------------------- Question From: Sent: Friday, January 22, 2010 3:16 PM To: colin.boyd@usask.ca Subject: COMM 101 assignment Professor Boyd, I am unclear about "an aspect of strategy" that is required for assignment #1 in COMM 101(02). Would you be able to clarify this in more detail so that my partner and I can success with this assignment. Thanks! Have a great weekend! Answer Hi : Strategic management is all about planning for the future. The article you choose should have some kind of example of your chosen firm having made (or thinking of making) a decision about its future. This could be stability, growth, or retrenchment. This could be changing positions regarding horizontal breadth of products, vertical integration, or geographical...
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...PEST Analysis One way of planning your business is to undertake a PEST analysis.1 PEST analysis involves looking at the Political, Economic, Socio-cultural and Technological factors that could affect your business. Every business needs to consider a range of external forces in order to take decisions. For many people imagination is very limited and is coloured solely by their own experience and personal beliefs. This can lead to wish fulfilment or a refusal to see reality or recognise the critical changes that are happening in the world around them. It can also lead to grabbing short-term solutions that, if they do not exacerbate problems, certainly ignore the longer term. In the business world pressure is often applied to take decisions quickly, acting on judgement and instinct rather than careful analysis. There are many driving forces in the external environment that might impact on your business. These can be categorised as: • Social; • Technological; • Economic; • Environmental; and • Political. Social forces Social forces include, for example, changing demography and education, etc. The population in Western Europe is relatively static, but the age bands are changing. The number of older people, for example, is growing rapidly. Technological forces Technological forces are changing dramatically quickly. What effects will this have on your production, marketing and distribution plans? Depending on your market, technology might either raise or lower entry barriers...
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...1.0 QUESTION 1 “PEST analysis is used by businesses around the world to devise a strategic approach to their activities”. Discuss this statement describing in detail the components of the said analysis. 1.1 INTRODUCTION Apart from a company’s internal resources there are several other factors that have a profound impact the performance of a company. The internal resources usually refers to the employees of the firm, contractors, sub-contractors, suppliers and so on whereas the external environment refers to the market, clients, stakeholders, etc. 1.2 PEST ANALYSIS According to Kotler (1998), PEST analysis is a useful strategic tool for understanding market growth on decline, business position and direction for operations. The use of PEST analysis can be seen effective for business and strategic planning, marketing planning, business and product development and research. In order to survive, be profitable and maintain their competitive advantage, organizations have to recognise and take advantages of the external environments as well as identifying and consider threats when developing strategies. One of the most commonly used analytical tools for assessing external factors in a business situation is PEST analysis. Pest is an acronym for Political, Economic, Social and Technological external factors. PEST analysis is beneficial when conducting research before beginning a new project or to help conduct market research. Also, PEST analysis helps to determine...
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...BLEND TWO COUNTRY ANALYSIS ITALY Task: You will carry out an analysis of Italy today in order to have a general idea of its current state of affairs. To do this you will visit several sites to gather the necessary information. This information should then be transferred in note-form onto the table below. You will then use these notes to give a short, informal presentation during the following class session. Procedure: You will use a well-known analytical tool: THE PEST ANALYSIS. Although this tool was originally created for the business environment, it is now used in many sectors to analyse organisations, projects and systems. STEP ONE: WHAT IS A PEST ANALYSIS 1. First you need to find out what a PEST analysis is: Go to http://www.rapidbi.com/created/the-PESTLE-analysis-tool.html#political Read quickly through the information and write short answers to the following questions: What sort of picture does a Pest analysis offer? Why is it important to take these factors into account? What are some common uses of the Pest? In what situation might you use a Pest in your own professional context? The Table below gives some of the indicators which may be relevant for each category. Can you think of any other factors to consider? Add them to the corresponding column. PEST ANALYSIS TEMPLATE Political / Legal Economic Social Technological - Government organisation / attitude - Economic growth (overall; by industry sector) - Income...
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...Case 1 PEST analysis for Target Canada MGMT 6057 Contemporary Business Management Fanshawe College Submitted To: Albert Knab Submitted By: Jwal Dakwala Student Id: 0723855 Date: October 18, 2014 Introduction The acronym of PEST is: * Political * Economic * Social * Technological PEST includes factors related to political, economic, social and technological related factors of the company whose effect can cause a great loss to the company. PEST analysis describes the structure of some macro-environmental factors that are used in scanning, environmental fundamental element for a strategic measurement which affects all the firm of the company. PEST factors are crucial to the company’s environment which can affect the company’s growth or can even shut down a company. Such factors are beyond the company’s firm and can cause a great threat by themselves. Political components fundamentally incorporate the tenets and regulations made by the legislature and some lawful issues which incorporate formal to casual decides that are most to be trailed by the organization. Financial components incorporates the impact of monetary development, investment rate, swapping scale and expansion rate. Social variables incorporates social components and it likewise incorporates wellbeing distinguishment, populace development rate, age dispersion and security. Technological elements incorporates innovative angles which can bring down the impediment to entrance and which can...
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...Political/Legal * Singapore is an enterprise friendly country. Several organisations are set up by the Singapore government to help businesses runs in a very systematic way. * Ministry of Trade and Industry (MTI) provide the vision of make Singapore a leading global city of talent, enterprise and innovation. * SPRING Singapore (Standards, Productivity, and Innovation Boards) helps for growing innovative companies and fostering and encouraging a competitive SME sector. * Lemon Law will not only benefit consumers and retailers but also boost Singapore’s retail industry in the long run. * Singapore is a country where enforcement units are very efficient and with very low corruption rate. (arun 2011) Economic * Singapore is known as vibrant free market economy. Its economy depending heavily on export. Also, it enjoys a higher per capita income than most of the developed countries (Kashyap 2011). * High inflationary pressures on Singapore will affect the consumers buying power. This pressure is cause by the financial crisis since 2008 onwards (arun 2011). * The unemployment rate in Singapore was last reported at 2 percent in the second quarter of 2012 (Trading Economics 2012). * Historically, The Singapore interest rate averaged 1.69 Percent (Trading Economics 2012). Increment of interest rate will affect the consumer’s spending power. Social Cultural * Singapore is an eastern country, which still follows the traditional families values...
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...the market. The organization should analyze the overall market and events taking place externally in the environment. By utilizing strategic planning helps an organization create policies and services in the market. Strategic planning also helps to achieve competitive advantage. Being new in the global marketplace, it is highly beneficial to perform a SWOT analysis on the organizations two biggest competitors. The two biggest global competitors are; IKEA and Ethan Allen both are setting the scale for being very competitive in the market. The SWOT analysis on both organizations will provide information to help the organization keep up in the competitive market. (Steinberg, 2015) Along with the SWOT analysis the organization should perform analysis just at the 5 C’s of marketing as well as a PEST analysis. The 5 C’s of Marketing is used to analyze five key areas that are involved in marketing decisions for a company, they aspects include; company, customers, competitors, collaborators, and climate. The 5 C’s is a great guideline to make the right decisions, and define a proper marketing plan and strategy. A PEST analysis is the...
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