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Pest

This document discusses PEST analysis, which examines the political, economic, sociocultural, and technological factors in an organization's macro environment that can affect its operations. Political factors include things like regulations, trade policies, employment laws, and tax policies. Economic factors refer to economic conditions and trends in areas such as interest rates, inflation, unemployment, and exchange rates. Sociocultural factors cover demographic aspects as well as cultural aspects such as attitudes and lifestyles. Technological factors relate to technological developments and their rate of change that can influence business operations and competitiveness. PEST analysis is an important part of environmental scanning to understand the external forces impacting an organization.

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hetal
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35 views

Pest

This document discusses PEST analysis, which examines the political, economic, sociocultural, and technological factors in an organization's macro environment that can affect its operations. Political factors include things like regulations, trade policies, employment laws, and tax policies. Economic factors refer to economic conditions and trends in areas such as interest rates, inflation, unemployment, and exchange rates. Sociocultural factors cover demographic aspects as well as cultural aspects such as attitudes and lifestyles. Technological factors relate to technological developments and their rate of change that can influence business operations and competitiveness. PEST analysis is an important part of environmental scanning to understand the external forces impacting an organization.

Uploaded by

hetal
Copyright
© © All Rights Reserved
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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PEST Analysis

What is 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


2. The micro-environment
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 a huge


influence upon the regulation
of businesses, and the
spending power of consumers
and other businesses.

Economic Factors
Marketers

need to
consider the state of a
trading economy in the
short and long-terms. This
is especially true when
planning for international
marketing.

Sociocultural Factors
The

social and cultural


influences on business
vary from country to
country. It is very
important that such
factors are considered.

Technological Factors
Technology

is vital for
competitive advantage,
and is a major driver of
globalization.

SUMMARY
Political (incl.
Legal)

Economic

Sociocultural

Technologic
al

Environmental
regulations and
protection

Economic growth

Income distribution

Government
research spending

Tax policies

Interest rates &


monetary policies

Demographics,
Population growth
rates, Age
distribution

Industry focus on
technological effort

International trade
regulations and
restrictions

Government
spending

Labor / social
mobility

New inventions and


development

Contract enforcement law


Consumer protection

Unemployment policy

Lifestyle changes

Rate of technology
transfer

Employment laws

Taxation

Work/career and
leisure attitudes
Entrepreneurial spirit

Life cycle and


speed of
technological
obsolescence

Government
organization / attitude

Exchange rates

Education

Energy use and


costs

Competition regulation

Inflation rates

Fashion, hypes

(Changes in)
Information
Technology

Created By
Pongpon

Pruksapakon
45062247
Manita Chiwalertpanya
45160546
Parita Dearntambab 45160504

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