The PEST Analysis (Political, Economic, Social and Technological analysis) is a strategic management analysis that describes a framework of macro environmental factors of a company.
It is a helpful strategic tool for understanding market growth or decline, business position, potential and direction for operations. The basic PEST analysis includes four factors: Political factors (e.g. tax policy, labor law, trade restrictions), Economic factors (e.g. economic growth, interest rates, exchange rates), Social factors (cultural aspects, population growth rate, age distribution), Technological factors (e.g. R&D activities, technology incentives, technological change rate). The expanding analysis to PESTLE or PESTEL adds: Legal factors (e.g. consumer law, employment law, health and safety law) and Environmental factors (e.g. weather, climate change).
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Entrepreneurship & organisations: influences and organizations
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PEST Analysis PowerPoint Template
2. PEST Analysis – PPT Slide
•Political stability
•Risk of military invasion
•Legal framework for contract enforcement
•Intellectual property protection
•Trade regulations
•Favored trading partners
•Anti-trust laws
•Pricing regulations
•Taxation - tax rates and incentives
•Work week
•Wage legislation -minimum wage and overtime
•Mandatory employee benefits
•Industrial safety regulations
POLITICAL FACTORS
•Recent technological developments
•Technology's impact on product offering
•Impact on cost structure
•Impact on value chain structure
•Rate of technological diffusion
•Competing technology
•Research funding
•Associated and dependent technologies
•Replacement technology/solutions
•Maturity of technology
•Manufacturing maturity and capacity
•Information and communications
TECHNOLOGICAL FACTORS
•Type of economic system in countries of operation
•Government intervention in the free market
•Comparative advantages of host country
•Exchange rates
•stability of host country currency
•Efficiency of financial markets
•Infrastructure quality
•Skill level of workforce
•Labor costs Economic growth rate
•Discretionary income
•Unemployment rate
•Inflation rate
•Interest rates
ECONOMIC FACTORS
•Demographics
•Class structure
•Education
•Culture (gender roles, etc.)
•Entrepreneurial spirit
•Attitudes (health, environmental consciousness, etc.)
•Leisure interests
•Lifestyle trends
•Demographics
•Consumer attitudes and opinions
SOCIAL FACTORS
4. PEST Analysis – PPT Slide
SOCIAL
•Population demographics
•Income distribution
•Social mobility
•Lifestyle changes
•Attitudes to work and leisure
•Consumerism
•Levels of education / Health
•Employment Patterns / Attitudes to work
•Likely Socio-Cultural Change
POLITICAL
•Monopolies legislation
•Environmental protection laws
•Taxation policy
•Foreign Trade regulations
•Government Type & Stability
•Employment Law
•Regulation / De-Regulation Trends
•Likely Political Change
ECONOMIC
•Business Cycle Stage
•Globalization
•Unemployment
•Interest rates
•Money supply
•Inflation
•Disposable income / Distribution
•Energy availability and cost
•Likeley Economic Change
TECHNOLOGICAL
•Impact of Emerging Technologies
•Impact of Internet
•Government spending on research
•Reduced Communication Costs
•New discoveries / development
•Impact of Technology Transfer
•Speed of Technology Transfer
•Likeley Technological Change
5. PEST Analysis – PPT Slide
P POLITICAL
E ECONOMIC
S SOCIAL
T TECHNOLOGICAL
POLITICAL FACTORS
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