1 / 6

1.5 External Environment

1.5 External Environment. PEST Analysis. PEST ANALYSIS. This form of business analysis examines the external environment and the global factors that may affect a business. It can provide a quick and visual representation of

giovanni
Download Presentation

1.5 External Environment

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. 1.5 External Environment PEST Analysis

  2. PEST ANALYSIS This form of business analysis examines the external environment and the global factors that may affect a business. It can provide a quick and visual representation of the external pressures facing a business, and their possible constraints on strategy. It is usually divided into four external influences on a businessP – Political E – Economic S – Social T – Technological

  3. PEST ANALYSIS POLITICAL: This is concerned with how political developments, regionally, nationally and internationally might affect a business’s strategy. Employee protection-health/safety, redundancy pay, discrimination, minimum wage Consumer protection-truth in advertising, high-pressure sales tactics, sales agreements Competition protection-unfair trade practices, monoply, mergers & takeovers

  4. PEST ANALYSIS ECONOMIC:This involves the analysis of a wide variety of economic factors and their effects on a business. They include: Economic growth and rising living standards Low/high levels of inflation Low/high levels of unemployment Balance of payments (value of imports vs exports)

  5. PEST ANALYSIS SOCIAL - What competitive advantage might a business gain by social changes taking place outside of the business? Aging population, reduced birth rates, longer life expectancy Changing role of women in the workplace Improved Education – better skilled workers Early retirement, more leisure time Rising divorce rates, more “single” households Job security Immigration creating a wider range of consumer tastes

  6. PEST ANALYSIS TECHNOLOGICAL– The impact of technological advancement on business strategy. Business Software applications (word processing, spreadsheets, database, accounting systems, inventory systems) Computer-aided design Computer-aided manufacturing Internet/Intranet

More Related