{"id":6974,"date":"2021-05-09T17:21:04","date_gmt":"2021-05-09T17:21:04","guid":{"rendered":"https:\/\/trkcreativegroup.com\/?page_id=6974"},"modified":"2024-11-19T10:43:10","modified_gmt":"2024-11-19T10:43:10","slug":"pest-analysis","status":"publish","type":"page","link":"https:\/\/maamcs.com\/index.php\/pest-analysis\/","title":{"rendered":"PEST ANALYSIS"},"content":{"rendered":"\t\t
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Pest Analysis<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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When we start thinking about factors that can affect our businesses, then there are a lot of variables which will need to be evaluated before taking a decision. PEST analysis is a framework that categorizes macro-environmental influences in strategic planning. These influences may include political, economic, social and technological forces often used in the environmental scope of this process. The goal of PEST analysis is to examine the overall impact of each of these categories (and the potential or real correlation with each other) on the business. The results are often used either to take advantage of potential opportunities and\/or to make contingency plans for opposing threats when preparing business and strategic plans.<\/p>\n

PEST Analysis helps organizations take better business decisions and improve efficiency by studying various factors which might influence a business such as political, economic, social, and technology.<\/p>\n

PEST analysis helps in making strategic business decisions, planning marketing activities, product development and research.<\/p>\n

External Environment consist both micro environment and macro environment<\/strong><\/p>\n

\u00a0<\/p>\n

    \n
  1. Micro environment\u00a0consist all those factors close to the marketing environment and influences its operation and activities. For example, employees, competitors, partners, customers, public etc.<\/li>\n<\/ol>\n

    \u00a0<\/p>\n

      \n
    1. Macro environment\u00a0consist 6 factors i.e. political, economic, social, technical, legal and environment also known as PESTLE factors. These are external factors and affect every business in the industry on broader view. If not responded, can badly influence the business.<\/li>\n<\/ol>\n

      \u00a0<\/p>\n

      Political Factors<\/h2>\n

      These are all about how and to what degree a government intervenes in the economy. This can include \u2013<\/p>\n

      Government policies<\/p>\n

      Political Stability or Instability<\/p>\n

      Risk of military invasion<\/p>\n

      Legal framework for contract enforcement<\/p>\n

      Intellectual property protection
      Trade regulation & tariffs<\/p>\n

      Favored trading partners<\/p>\n

      Anti-trust laws<\/p>\n

      Pricing regulations<\/p>\n

      Taxation \u2013 tax rates and incentives<\/p>\n

      Wage legislation \u2013 minimum wage and overtime<\/p>\n

      Work week<\/p>\n

      Mandatory employee benefits<\/p>\n

      Industrial safety regulations<\/p>\n

      Product labeling requirements<\/p>\n

      Overseas markets<\/p>\n

      Foreign trade policy<\/p>\n

      Overseas markets<\/p>\n

      and so on.<\/p>\n

      It is clear from the list above that political factors often have an impact on organizations and how they do business. Organizations need to be able to respond to the current and anticipated future legislation, and adjust their marketing policy accordingly.<\/p>\n

      Economic Factors<\/h3>\n

      Economic Factors take into account the various aspects of the economy, and how the outlook on each area could impact your business. These economic indicators are usually measured and reported by Central Bank\u00a0and other Government Agencies.<\/p>\n

      Type of economic system in countries of operation<\/p>\n

      Government intervention in the free market<\/p>\n

      Economic Growth Rates<\/p>\n

      Interest Rates<\/p>\n

      Exchange Rates<\/p>\n

      Inflation<\/p>\n

      Comparative advantages of host country<\/p>\n

      Efficiency of financial markets<\/p>\n

      Infrastructure quality<\/p>\n

      Skill level of work force<\/p>\n

      Labor cost<\/p>\n

      Business cycle stage: (e.g. prosperity, recession, recovery)<\/p>\n

      Economic growth rate<\/p>\n

      Discretionary income<\/p>\n

      Unemployment rate<\/p>\n

      Inflation rate<\/p>\n

      Interest rates<\/p>\n

      Often these are the focus of external environment analysis. The Economic outlook is of extreme importance for a business, but the importance of the other PEST factors should not be overlooked.<\/p>\n

      Social Factors<\/h3>\n

      Social factors securitize the social environment of the market<\/a>. These factors include demographic characteristics of the population, values, culture, lifestyle. Cultural aspects also include-<\/p>\n

      Demographic<\/p>\n

      Class Structure<\/p>\n

      Entrepreneurial spirit<\/p>\n

      Attitudes (health, environmental consciousness)<\/p>\n

      Leisure interest<\/p>\n

      Political<\/p>\n

      Social organizations<\/p>\n

      Aesthetics<\/p>\n

      Education<\/p>\n

      Laws<\/p>\n

      Reference groups and families<\/p>\n

      \u00a0<\/p>\n

      Mostly, these factors are linked but each has a different effect on the consumer buying behavior. Socio-cultural factors have a great influence to develop and implement a successful marketing strategy of a company.<\/p>\n

      For example, nowadays, woman has a decision-making role in shopping and an integral part of marketing campaigns. A small business owner can develop a successful\u00a0campaign, adopting focused advertising strategy by targeting women, moms, leaders and interest groups who has great influence in community.<\/p>\n

      Technological Factors<\/h2>\n

      We all know how fast the technological landscape changes and how this impacts the way we market our products. Technological factors affect marketing and the management thereof in many distinct ways:<\/p>\n

      Recent technological developments<\/p>\n

      Technology\u2019s impact on product offering<\/p>\n

      Impact on cost structure<\/p>\n

      Impact on value chain structure<\/p>\n

      Rate of technological diffusion<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

      Pest Analysis When we start thinking about factors that can affect our businesses, then there are a lot of variables which will need to be evaluated before taking a decision. PEST analysis is a framework that categorizes macro-environmental influences in strategic planning. These influences may include political, economic, social and technological forces often used in<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-6974","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/maamcs.com\/index.php\/wp-json\/wp\/v2\/pages\/6974","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/maamcs.com\/index.php\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/maamcs.com\/index.php\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/maamcs.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/maamcs.com\/index.php\/wp-json\/wp\/v2\/comments?post=6974"}],"version-history":[{"count":22,"href":"https:\/\/maamcs.com\/index.php\/wp-json\/wp\/v2\/pages\/6974\/revisions"}],"predecessor-version":[{"id":7696,"href":"https:\/\/maamcs.com\/index.php\/wp-json\/wp\/v2\/pages\/6974\/revisions\/7696"}],"wp:attachment":[{"href":"https:\/\/maamcs.com\/index.php\/wp-json\/wp\/v2\/media?parent=6974"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}