Exchange rates can affect the costs of exporting goods and the supply and price of imported goods in an economy. Technological — How technology can either positively or negatively impact the introduction of a product or service into a marketplace is assessed here.
This has a large impact on B2C organisations in particular. For example, the ageing population may imply a smaller and less-willing workforce thus increasing the cost of labour.
Economic factors include inflation rate, interest rates, foreign exchange rates, economic growth patterns etc. Environmental factors include ecological and environmental aspects such as weather, climate, and climate changewhich may especially affect industries such as tourism, farming, and insurance.
How is this likely to change? Other factors for the various offshoots include: It is clear from the list above that political factors often have an impact on organisations and how they do business. Social Factors Also known as socio-cultural factors, are the areas that involve the shared belief and attitudes of the population.
These factors scrutinize the social environment of the market, and gauge determinants like cultural trends, demographics, population analytics etc. Are there any other technological factors that you should consider? Technological Factors to Consider Are there any new technologies that you could be using?
There are certain questions that one needs to ask while conducting this analysis, which give them an idea of what things to keep in mind. Do any of your competitors have access to new technologies that could redefine their products? For example, consumer laws, safety standards, labor laws etc. Furthermore, governments have a high impact on the healtheducationand infrastructure of a nation.
These factors can be further broken down into macro-economical and micro-economical factors. These factors are of particular interest as they have a direct effect on how marketers understand customers and what drives them.
These factors have both external and internal sides. Legal Factors Legal factors include - health and safety, equal opportunities, advertising standards, consumer rights and laws, product labelling and product safety. This can include — government policy, political stability or instability in overseas markets, foreign trade policy, tax policy, labour law, environmental law, trade restrictions and so on.
For example, consumer and B2B companies tend to Peste analysis on pal more affected by the social factors, while a global defense contractor would tend to be more affected by political factors. These are best used for understanding change in multinational organizations.
How do religious beliefs and lifestyle choices affect the population? These factors include — population growth, age distribution, health consciousness, career attitudes and so on.
Furthermore, growing awareness of the potential impacts of climate change is affecting how companies operate and the products they offer, both creating new markets and diminishing or destroying existing ones.
It is clear that companies need to know what is and what is not legal in order to trade successfully. If you understand this early enough, you may be able to avoid these problems, or minimize their impact. These factors pertain to innovations in technology that may affect the operations of the industry and the market favorably or unfavorably.
Other business-related factors that might be considered in an environmental analysis include Competition, Demographics, Ecological, Geographical, Historical, Organizational, and Temporal schedule. An example for this can be buying trends for Western countries like the US where there is high demand during the Holiday season.
The main issues addressed in this section include political stability, tax guidelines, trade regulations, safety regulations, and employment laws.
Regulatory factors include acts of parliament and associated regulations, international and national standards, local government by-laws, and mechanisms to monitor and ensure compliance with these. These are just some of the issues marketers are facing within this factor.
Economic — Through this factor, businesses examine the economic issues that are bound to have an impact on the company. Legal analysis takes into account both of these angles and then charts out the strategies in light of these legislations.
Are there any current legislations that regulate the industry or can there be any change in the legislations for the industry? This analysis is used to assess these four external factors in relation to your business situation.
Are any other socio-cultural factors likely to drive change for your business?PEST Analysis is a simple and widely used tool that helps you analyze the Political, Economic, Socio-Cultural, and Technological changes in your business environment. This helps you understand the "big picture" forces of change that you're exposed to, and, from this, take advantage of the opportunities that they present.
When we are analyzing the macro environment of a company we usually use the PESTE analysis to help us to clear our goal, identify all the factors which are affecting our company directly or indirectly.
Such us political factors, economic factors, social factors, technological factors, environmental factors and legal factors. PESTEL model analysis of Nepal 1. PESTEL Analysis of Nepal • Presented by: Amish Dhungel 2. • PESTEL analysis describes a framework of macro-environmental factors used in the environmental scanning component of strategic management.
What is PEST Analysis? PEST is an acronym for Political, Economic, Social and Technological. This analysis assesses these factors in relation to a business. PEST analysis (political, economic, socio-cultural and technological) describes a framework of macro-environmental factors used in the environmental scanning component of strategic management.
What is PEST or PESTEL analysis? Click inside to find the examples, templates and how to perform the analysis for your company.Download