PEST Analysis: - Environmental Regulation and Protection - Taxation (Corporate Consumer)
PEST Analysis: - Environmental Regulation and Protection - Taxation (Corporate Consumer)
PEST analysis is concerned with the environmental influences on a business. The acronym stands for the Political, Economic, Social and Technological issues that could affect the strategic development of a business. Identifying PEST influences is a useful way of summarising the external environment in which a business operates. However, it must be followed up by consideration of how a business should respond to these influences. The table below lists some possible factors that could indicate important environmental influences for a business under the PEST headings
Political / Legal Economic Social Technological
! Economic growth ! Income distribution "overall# by "change in industry sector$ distribution of disposable income# - Taxation (corporate; ! &onetary policy ! 'emographics "age consumer) "interest rates$ structure of the population# gender# family si(e and composition# changing nature of occupations$ - International trade ! %overnment ! )abour * social regulation spending "overall mobility level# specific spending priorities$ - Consumer protection ! Policy towards ! )ifestyle changes unemployment "e.g. Home wor,ing, "minimum wage, single households$ unemployment benefits, grants$ - Employment law ! Taxation "impact ! .ttitudes to wor, on consumer and leisure disposable income, incentives to invest in capital e-uipment, corporation tax rates$
- Competition regulation
! Exchange rates ! Education "effects on demand by overseas customers# effect on cost of imported components$ ! Inflation "effect ! 0ashions and fads on costs and selling prices$ ! Stage of the ! Health 2 welfare business cycle "effect on short! term business performance$ ! Economic ! )iving conditions 3mood3 ! consumer "housing, amenities, confidence pollution$