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Session On PEST Analysis

This document discusses a PEST analysis, which analyzes the political, economic, socio-cultural and technological factors of the external environment that may impact an organization. It breaks down each factor, providing examples of how laws, government policies, economic conditions, demographics, lifestyle trends and technological developments can influence business operations and strategy. Performing a PEST analysis is important for any organization before beginning marketing efforts, as it helps assess market opportunities and competitive threats from various external perspectives relevant to that particular business.

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Ashwani Singh
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© Attribution Non-Commercial (BY-NC)
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Download as PPT, PDF, TXT or read online on Scribd
24 views

Session On PEST Analysis

This document discusses a PEST analysis, which analyzes the political, economic, socio-cultural and technological factors of the external environment that may impact an organization. It breaks down each factor, providing examples of how laws, government policies, economic conditions, demographics, lifestyle trends and technological developments can influence business operations and strategy. Performing a PEST analysis is important for any organization before beginning marketing efforts, as it helps assess market opportunities and competitive threats from various external perspectives relevant to that particular business.

Uploaded by

Ashwani Singh
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Session on PEST Analysis

What is PEST Analysis?


This analysis is essential for an organization before beginning its marketing process Consists of internal environment and external environment

Break up of PEST

Political Factors Economic Factors Socio Cultural Factors Technological Factors

Political Factors
This is the most important influence on the regulation of any business.
How stable is the political environment? Influence the Government Policy / Law on your business o Governments position on Marketing Ethics o Governments policy on the economy o Governments view on culture under religion
o o

Political Factors - Contd.


Political System is responsible for Law Making. Immediate laws which affect any business in general are Central Excise, Sales Tax/ VAT, Corporate Income Tax, Personal Income Tax & Service Tax Environmental Protection Law Controls if any on Marketing Strategies o Like Marketing / Advertising of Cigarettes, Tobacco, Alcohol etc.

Political Factors - Contd..


Control on Pricing
o o o o

like sugar, drugs etc. Role of Public Sector Role of Private Sector Role of Joint Sector

Government Policies on the Economy

Economic Factors
Government outlook towards
o o o o o o o

Bank Financing Interest Rates Exchange Rate Mechanism Incentives for Exports Restrictions for Imports Inflation Labour Policies

Economic Factors - Contd.


Level of Government Spending Avenues for Capital Creation
o o o o

Size of the Capital Market Role of the Regulator Type of the Instruments Nature of the Investors

Economic Factors - Contd.


Business Cycles Monsoon Energy Availability Cost of Energy

Socio-Cultural Factors
Demographics Distribution of Income Social Mobility Life Style Changes Consumerism Educational Levels

Socio-Cultural Factors Contd.


Demographics & Distribution of Income
o o o

Division of population - Male / Female Age Group of the Population Disposable Family Income
Disposable Income in the hands of the different Age Groups Education Level of the Age Groups

Social Cultural Factors Contd.


Life Style Changes & Consumerism
o

Attitude to living
Different Age Groups In tune with available disposable income Thrust on taking care of present needs by spending than saving for the future. Joint living and nuclear families Availability of various media tools Reach of the media to the population

Technological Factors
Advantage of Technology
o

In terms of Economies of Scale

New Discoveries & Innovations Speed & Cost of Technology Transfer Rate of Obsolescence

Other Factors
Judicial System Insurance System Banking System Regulatory System Infra Structure
o o

Communication Transportation

Role of PEST
Helps Assess the market including Competitors from the stand point of a Particular Business. PEST is relevant for any type of Business large, small & medium.

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