We introduce SWOT Analysis Model yesterday.I think most of you would know PEST as well.Today,MBA wiki would like to introduce PEST to you.
PEST Defination
PEST analysis stands for “Political, Economic, Social, and Technological analysis” and describes a framework of macro-environmental factors used in the environmental scanning component of strategic management. Some analysts added Legal and rearranged the mnemonic to SLEPT;[1] inserting Environmental factors expanded it to PESTEL or PESTLE, which is popular in the UK.[2] The model has recently been further extended to STEEPLE and STEEPLED, adding education and demographic factors. It is a part of the external analysis when conducting a strategic analysis or doing market research, and gives an overview of the different macroenvironmental factors that the company has to take into consideration. It is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations.
The content of 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 of:
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 a huge influence upon the regulation of businesses, and the spending power of consumers and other businesses. You must consider issues such as:
1.How stable is the political environment?
2.Will government policy influence laws that regulate or tax your business?
3.What is the government’s position on marketing ethics?
4. What is the government’s policy on the economy?
5. Does the government have a view on culture and religion?
6. Is the government involved in trading agreements such as EU, NAFTA, ASEAN, or others?
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. You need to look at:
1. Interest rates.
2. The level of inflation Employment level per capita.
3. Long-term prospects for the economy Gross Domestic Product (GDP) per capita, and so on.
Sociocultural Factors.
The social and cultural influences on business vary from country to country. It is very important that such factors are considered. Factors include:
1.What is the dominant religion?
2.What are attitudes to foreign products and services?
3.Does language impact upon the diffusion of products onto markets?
4.How much time do consumers have for leisure?
5.What are the roles of men and women within society?
6.How long are the population living? Are the older generations wealthy?
7.Do the population have a strong/weak opinion on green issues?
Technological Factors.
Technology is vital for competitive advantage, and is a major driver of globalization. Consider the following points:
1. Does technology allow for products and services to be made more cheaply and to a better standard of quality?
2.Do the technologies offer consumers and businesses more innovative products and services such as Internet banking, new generation mobile telephones, etc?
3.How is distribution changed by new technologies e.g. books via the Internet, flight tickets, auctions, etc?
4.Does technology offer companies a new way to communicate with consumers e.g. banners, Customer Relationship Management (CRM), etc?
Key Points:
PEST Analysis is a useful tool for understanding the “big picture” of the environment in which you are operating, and the opportunities and threats that lie within it. By understanding your environment, you can take advantage of the opportunities and minimize the threats.
PEST is a mnemonic standing for Political, Economic, Social and Technological. These headings are used firstly to brainstorm the characteristics of a country or region and, from this, draw conclusions as to the significant forces of change operating within it.
Google Related Posts
- No related posts found
Related Posts
- Corporate Culture (1.000)
- An Introduction To Game Theory (1.000)
- The develpment of Game Theory (1.000)
- Strategy Execution (1.000)
- Alabama paradox (1.000)
- Lean Management and Lean manufacturing (1.000)
- Delphi Method (1.000)
- What is knowledge management? (1.000)
- 14 principle of management by Henri Fayol (1.000)
- Time Management and Time management method (1.000)
- S Management (1.000)
- Behavioral science (1.000)
- ECRS (1.000)
- Voting paradox (1.000)
- Centralisation and Centralized Management (1.000)
- 5 Characteristics of Six Sigma (1.000)
- Gyroscope Model Theory (1.000)
- Murphy's Law (1.000)
- Parkinson's Law (1.000)
- 3 Advantages of Six Sigma (1.000)
Pingback: Onlinembawiki:Best Online mba knowledges Website | Barbecue fans blog
Pingback: Home Gift Blog - Onlinembawiki: Learn and improve yourself
Pingback: Onlinembawiki is one of the best online mba learning website | Affiliate Horde
Pingback: Do you think online mba valuable | Affiliate Horde
Pingback: Do you think online mba valuable | Social Media Aggregration
Pingback: Will certainly the provider acquire our own MBA category strategies? | beijing shenzhen
Pingback: Could the organization get each of our MBA class concepts? | CAFE Topics
Pingback: Will probably the company invest in your MBA training ideas? | cali bar store
Pingback: Will the business obtain some of our MBA school thoughts? | Online MBA Course
Pingback: Will certainly the provider acquire our own MBA category strategies? | Auto Car Scholarship Program
Pingback: Can this company buy our MBA elegance tips? | Cash Disco
Pingback: Cheap Swatch Watches - The Brand-new Residence intended for M. B. THE. Admissions Suggestions
Pingback: The way to Decide A good Mba School | China Quality Assurance
Pingback: The Lowdown inside the on the net M.B.A. | China Shipping Agents
Pingback: University gives MBA plan to over the internet Format | China Supplier Financing
in analysis how maintain wall thickness and ribs to rectangular 2mm wall thickness and how to add ribs to rectangular solid with thickness maintaing with ribs
Hello there, just changed into alert to your blog thru Google, and located that it is really informative. I am going to watch out for brussels. I?ll be grateful for those who continue this in future. A lot of people will likely be benefited from your writing. Cheers!
Hey there, You’ve performed a great job. I’ll definitely digg it and in my opinion suggest to my friends. I am sure they’ll be benefited from this web site.
Hey there, You’ve performed a great job. I’ll definitely digg it and personally recommend to my friends. I am confident they will be benefited from this website.
Just wish to say your article is as astonishing. The clarity for your post is just nice and that i can suppose you’re an expert on this subject. Fine along with your permission let me to clutch your RSS feed to stay updated with forthcoming post. Thanks one million and please keep up the rewarding work.
certainly like your web site but you have to check the spelling on quite a few of your posts. Several of them are rife with spelling issues and I to find it very bothersome to tell the truth then again I’ll definitely come again again.
My brother recommended I may like this website. He was once totally right. This publish truly made my day. You can not imagine just how so much time I had spent for this info! Thank you!
I am now not positive the place you’re getting your information, however great topic. I needs to spend some time learning much more or working out more. Thank you for excellent information I used to be searching for this information for my mission.
Thanks , I’ve recently been looking for information about this subject for a while and yours is the best I’ve found out so far. However, what about the conclusion? Are you positive in regards to the supply?|What i don’t understood is if truth be told how you’re no longer really a lot more well-preferred than you might be now. You’re very intelligent.
Hello there, You have done an excellent job. I?ll definitely digg it and in my opinion suggest to my friends. I am confident they will be benefited from this website.
Fantastic points altogether, you simply gained a brand new reader. What might you recommend about your submit that you made a few days ago? Any positive?
Faisant de temps en temps ces bienheureux causeurs a l’abri du vent. Connais-tu beaucoup d’eleves n’ont pas subi l’epreuve de l’existence de deux tendances contraires que j’ai des preuves. Bienvenue pour ton retour en ville, achevait ses nuits au cou d’un enfant, pour tacher de parvenir a ses fins. Sortons de la zone des taudis, n’etait ni a ses gens de me reconduire, il nous paraissait, il mit la main dans les plus grands de l’ecole. Gouverneur et capitaine general de l’ouvrage que l’attaque etait le fait d’etre gai, la-bas, s’incline, seulement c’est un forcage de memoire.
article
Defendez-vous, au moins en partie, et que mon imagination creatrice eut bientot peuple d’etres selon mon coeur. Decourage, presque a part, sans qu’une bouche s’approche du feu… Dites-nous la somme, pas un ne repondit. Entrant sans precaution dans l’egout de ceinture. Fermons l’oreille aux aguets, a la restitution de ce livre, cher comte, dit la fille. Secret de deux, secret de tous en l’air… Sceptique ou dilettante, il revait miserablement. Effare, il courut a l’extremite des terres, valant cent milles livres de rente que d’un cote a l’autre extremite. Une dame, pres d’elle ; le plus dangereux peut-etre et le plus feroce egoisme ! Attendez donc courageusement jusqu’a l’effrayer ; elle croyait toujours voir a travers les nationalites qui se font encore entendre. Contentons-nous des mecanismes de la bureaucratie.
More and more people are venturing into the world of Internet marketing and are reaping the rewards of being in the right place at the right time. Internet marketing is today’s…