...Source: http://www.mindtools.com/pages/article/newTMC_09.htm Last accessed 11.21.2011 PEST Analysis Understanding "Big Picture" Forces of Change Also PESTLE, PESTEL, PESTLIED, STEEPLE & SLEPT. PEST Analysis is a simple but important and widely-used tool that helps you understand the big picture of the Political, Economic, Socio-Cultural and Technological environment you are operating in. PEST is used by business leaders worldwide to build their vision of the future. It is important for these reasons: By making effective use of PEST Analysis, you ensure that what you are doing is aligned positively with the forces of change that are affecting our world. By taking advantage of change, you are much more likely to be successful than if your activities oppose it. Good use of PEST Analysis helps you avoid taking action that is condemned to failure for reasons beyond your control. PEST is useful when you start operating in a new country or region. Use of PEST Analysis helps you break free of unconscious assumptions, and helps you quickly adapt to the realities of the new environment. How to Use the Tool: PEST is a simple mnemonic standing for Political, Economic, Socio-Cultural and Technological. Please see worksheet on the following page. Using the tool is a three stage process: First, you brainstorm the relevant factors that apply to you, using the prompts below. Second, you identify the information that applies to these factors. Third, you draw conclusions...
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...PEST Analysis Template Situation being analysed: ______________________________________________________________________ PEST analysis (political, economical, social, technological) assesses a market, including competitors, from the standpoint of a particular proposition or a business. |criteria examples |political |economical |criteria examples | | | | | | |ecological/environmental | | |home economy | |current legislation | | |economy trends | |future legislation | | |overseas economies | |international legislation | | |general taxation | |regulatory bodies and | | |taxation specific to | |processes | | |product/services | ...
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...PEST Analysis Template Situation being analysed: ______________________________________________________________________ PEST analysis (political, economical, social, technological) assesses a market, including competitors, from the standpoint of a particular proposition or a business. |criteria examples |political |economical |criteria examples | | | | | | |ecological/environmental | | |home economy | |current legislation | | |economy trends | |future legislation | | |overseas economies | |international legislation | | |general taxation | |regulatory bodies and | | |taxation specific to | |processes | | |product/services | ...
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...When making a PEST analysis chart, you'll want to examine several external factors that may influence business operations and decision making, then classify these factors into four distinct buckets: policitcal, economic, social, and technical. Political factors are essentially how and to what degree a government's policy will impact a business's operations and decisions. Political factors include tax policy, labor law, environmental law, trade restrictions, regulations, tariffs, and political and economical stability. Governments have great influence on national infrastructure and the general education of the population as potential employees and customers. Economic factors are local, national, and international economic conditions that can influence a business's operations and decisions. Economic factors include economic growth, interest rates, taxes, consumer confidence, exchange and inflation rates. Social factors include lifestyle trends such as health consciousness, population growth rate, age distribution, career attitudes, and ethics. Trends in social factors also affect the demand for a business's products and how that business operates. Technological factors include R&D activity, licensing and acquiring patents, available research funding, communications, automation, technology incentives and the rate of technological innovation. Technological factors may determine barriers to entry, minimum efficient production level, and influence outsourcing decisions. PESTLE...
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...Do You Need Walnut Creek Pest Control? Bugs may seek shelter in your home. Pest prevention in Walnut Creek is extremely important because bugs are not only a nuisance, but they can also cause major problems. They can cause serious damage to your home. They can also multiply quickly. In fact, some critters can lay several eggs per day. Additionally, many pests can cause diseases. A Walnut Creek pest management company can prevent critters from doing major damage to your home. There are several signs that suggest you need a professional. You need professional pest management in Walnut Creek if your home has excess moisture. Some critters, such as termites and cockroaches, love moisture. You need professional pest management in Walnut Creek...
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...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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...PEST and PESTLE analysis is a framework used in the environmental scanningcomponent of strategic management. Under PEST and PESTLE analysis are externalfactors which are the major players in the success and failure of an organization. Politicalfactor is the government intervention in the economy. This includes tax policy, labour andenvironmental law, trade restrictions, tariffs, and political stability. Under Economic factor iseconomic growth, interest and inflation rates. These factors directly affect the cost of capitalin business operation as well as the costs in exporting goods and the supply and price of theimported goods in the economy. Social factors include cultural aspects, population growthrate, health consciousness and age distribution while... PEST Analysis The PEST analysis is a useful tool for understanding market growth or decline, and as such the position, potential and direction for a business. A PEST analysis is a business measurement tool. PEST is an acronym for Political, Economic, Social and Technological factors, which are used to assess the market for a business or organizational unit. Political The political area has a huge influence upon the regulation of a business and the spending power of consumers and other businesses. Before I put my product on the market I need to consider issues such as: Tax policy: I will need to look at certain levels of tax. If tax is high it can affect the incomes of customers and it might...
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...external environment; an organisation can increase its success by adopting strategies which manipulate these factors to its advantage. A successful organisation will not only understand existing factors but also forecast change, so that it can take advantage of change within the environments in which it operates. PEST and SWOT analysis are the tools used to find out the current status and position of an organization or individual in relation to their external environment and current role. They can then be used as a basis for future planning and strategic management. PEST analysis is a concept in marketing principles. Moreover, this concept is used as a tool by companies to track the environment they’re operating in or are planning to launch a new project, product or service. PEST is a mnemonic which in its expanded form denotes P for Political, E for Economic, S for Social, T for Technological, L for Legal and E for Environmental. It gives a bird’s eye view of the whole environment from many different angles that one wants to check and keep a track of while contemplating on a certain idea/plan. A PEST analysis is often conducted prior to SWOT analysis. The data gathered in PEST analysis is used as the “external issues” in a SWOT analysis. A SWOT Analysis is a tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, straightforward model that assesses what an organization can and cannot do as well as its potential...
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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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...0px; outline: 0px; padding: 0px; vertical-align: bottom; border: 0px;">JoinSearchBrowseSaved Papers "" style="font-family: inherit; font-size: 12px; font-style: inherit; font-weight: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: bottom; border: 0px;"> Home Page » Business and Management Pest Analysis In: Business and Management Pest AnalysisWhat 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...
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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...
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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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...THE CONCEPT OF PEST A pest can be defined as any organism which injures man, his property, or his environment, or which just causes him annoyance. Such organisms include principally certain insects, nematodes, fungi, weeds, birds and rodents, or any other terrestrial or aquatic plant or animal life, or virus, bacteria, etc. In agriculture, concern is normally expressed when the damage done to a crop by a specific crop pest or a group of pests causes a loss in yield or quality because this would mean a reduction in profit. When a loss in yield reaches certain proportions, the pest can be designated an economic pest. According to Edward and Heath (1964), the pest status is reached when there is a 5 percent loss in yield in a particular crop. In pest management, the economic appraisal of the pest status and justification of the need to embark on control measures is defined in relation to the following concepts: economic damage, economic injury level and economic threshold. Economic damage can be defined as the amount of injury done to a crop that will justify the cost of artificial control measures. Economic injury level is the lowest pest population density that can cause economic damage, which will vary from crop to crop, season to season, and area to area. For practical purposes, there is an economic threshold defined by Stern et al. (1959) as the pest population density at which control measures should be initiated or started to prevent an ever increasing pest population from...
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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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