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  • PEST Analysis

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    Cesar Gil
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    PEST is an acronym for the Political, Economic, Social, and technological macroenvironment. Such external factors usually are beyond the firm's control and sometimes present themselves as threats. Many macroenvironmental factors are countryspecific and A PEST analysis will need to be performed for all countries of interest.

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    PEST is an acronym for the Political, Economic, Social, and technological macroenvironment. Such external factors usually are beyond the firm's control and sometimes present themselves as threats. Many macroenvironmental factors are countryspecific and A PEST analysis will need to be performed for all countries of interest.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    57 views2 pages

    PEST Analysis

    Uploaded by

    Cesar Gil
    PEST is an acronym for the Political, Economic, Social, and technological macroenvironment. Such external factors usually are beyond the firm's control and sometimes present themselves as threats. Many macroenvironmental factors are countryspecific and A PEST analysis will need to be performed for all countries of interest.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    15/7/2015

    PESTAnalysis

    AccountingEconomicsFinanceManagement
    MarketingOperationsStatisticsStrategy
    StrategicManagement>PESTAnalysis
    SearchNetMBA

    PESTAnalysis

    APESTanalysisisananalysisoftheexternalmacroenvironmentthataffectsall

    SiteInformation
    firms.P.E.S.T.isanacronymforthePolitical,Economic,Social,andTechnological
    Home
    factorsoftheexternalmacroenvironment.Suchexternalfactorsusuallyare
    About
    beyondthefirm'scontrolandsometimespresentthemselvesasthreats.Forthis
    reason,somesaythat"pest"isanappropriatetermforthesefactors.However,
    Privacy
    changesintheexternalenvironmentalsocreatenewopportunitiesandtheletters
    Reprints
    sometimesarerearrangedtoconstructthemoreoptimistictermofSTEPanalysis.
    TermsofUse
    ManymacroenvironmentalfactorsarecountryspecificandaPESTanalysiswill
    needtobeperformedforallcountriesofinterest.Thefollowingareexamplesof
    someofthefactorsthatmightbeconsideredinaPESTanalysis.

    PoliticalAnalysis
    Politicalstability
    Riskofmilitaryinvasion
    Legalframeworkforcontractenforcement
    Intellectualpropertyprotection
    Traderegulations&tariffs
    Favoredtradingpartners
    Antitrustlaws
    Pricingregulations
    Taxationtaxratesandincentives
    Wagelegislationminimumwageandovertime
    Workweek
    Mandatoryemployeebenefits
    Industrialsafetyregulations
    Productlabelingrequirements

    EconomicAnalysis
    Typeofeconomicsystemincountriesofoperation
    Governmentinterventioninthefreemarket
    Comparativeadvantagesofhostcountry
    Exchangerates&stabilityofhostcountrycurrency
    Efficiencyoffinancialmarkets
    Infrastructurequality
    Skilllevelofworkforce
    Laborcosts
    Businesscyclestage(e.g.prosperity,recession,recovery)
    Economicgrowthrate
    http://www.netmba.com/strategy/pest/

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    15/7/2015

    PESTAnalysis

    Discretionaryincome
    Unemploymentrate
    Inflationrate
    Interestrates

    SocialAnalysis
    Demographics
    Classstructure
    Education
    Culture(genderroles,etc.)
    Entrepreneurialspirit
    Attitudes(health,environmentalconsciousness,etc.)
    Leisureinterests

    TechnologicalAnalysis
    Recenttechnologicaldevelopments
    Technology'simpactonproductoffering
    Impactoncoststructure
    Impactonvaluechainstructure
    Rateoftechnologicaldiffusion
    Thenumberofmacroenvironmentalfactorsisvirtuallyunlimited.Inpractice,the
    firmmustprioritizeandmonitorthosefactorsthatinfluenceitsindustry.Evenso,it
    maybedifficulttoforecastfuturetrendswithanacceptablelevelofaccuracy.In
    thisregard,thefirmmayturntoscenarioplanningtechniquestodealwithhigh
    levelsofuncertaintyinimportantmacroenvironmentalvariables.

    StrategicManagement>PESTAnalysis
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    InternetCenterforManagementandBusinessAdministration,Inc.

    http://www.netmba.com/strategy/pest/

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