What is PEST?
They are external factors that companies cannot control but in turn have to adapt to the situation.
Political
Economic
Sociocultural
Technological
Political
- Tax Policy
- Employment Laws
- Consumer Protection
- Environmental Regulations
- Political Stability
- Funding, Grants, Incentives
Economic
- Economic growth
- Employment levels
- Interest rates
- Exchange rates
- Inflation rate
- Competitive environment
Sociocultural
- Lifestyle trends (ex. health consciousness)
- Population growth & life expectancy
- Demographics (ex.language, age distribution, religion, etc)
- Consumer attitudes and opinions (including ethics & environmentalism)
- Emphasis on safety
- Environment/weather
Technological
- Research & Development activity
- Automation
- Technology incentives
- Rate of technological change
- Infrastructure
What is PEST used for?
A PEST analysis is used to evaluate a new strategy a company wants to initiate, this is a good way for the company to carefully analyze the situation and the external factors that might affect the company. SImply put: It's a way to prepare the company for any unexpected factors.
Follow my Posts on the External Factors of the company Lush in the "Blog Posts" Tab
I am blogging about the external factors that affect the Ferrero company because it would help me gain a better understanding on the PEST factors and how it affects a company.
I am blogging about the external factors that affect the Ferrero company because it would help me gain a better understanding on the PEST factors and how it affects a company.