There are many analysis used in the business analysis, such as SWOT analysis, PORTER’S 5 forces, value chain and many else. It is also for the PEST analysis which is one of the business analyses. The PEST analysis is a simple and effective tool used in situation analysis to identify in terms of external forces that might affect an organization. These forces can create both opportunities and threats for an organization. Therefore, the aim of doing PEST is to:
• Find out the current external factors affecting an organization;
• Identify the external factors that may change in the future;
• To exploit the changes (opportunities) or defend against them (threats) better than competitors would do.
The outcome of PEST is an understanding of the overall picture surrounding the company.
PEST analysis is also done to assess the potential of a new market or as the beginner in the market. The general rule is that the more negative forces are affecting that market the harder it is to do business in it. The difficulties that will have to be dealt with significantly reduce profit potential and the firm can simply decide not to engage in any activity in that market.
PEST is a mnemonic which in its expanded form denotes P for Political, E for Economic, S for Social and T for Technological. It gives a bird’s eye view of the whole environment from many different angles that one wants to check and keep a track of while contemplating on a certain idea or plan.
1. Political
These factors determine the extent to which a government may influence the economy or a certain industry. For example a government may impose a new tax or duty due to which entire revenue generating structures of organizations might change. Political factors include tax polici...
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...le logistic is a term borrowed from the military environment where also fashionably used in the same sense. Instead of tax and local pricing, shipping also important in the political analysis. It is because of in order to operate smoothly in the market; the e-tailers need to have high knowledge in the political sites. For example, to make sure the operation successful they must be concerned on the transportation part or cost. The e-tailers need to concern on the shipping due to the area or geographical of the target market. If they are really wanted to growth up the business in the particular area, they must responsible on the area surrounding. For example, if the area is far away from each other and also the residents or any facilities and connections, of course the costs in built it up is higher rather than the area that already exist any facilities needed.
A PESTLE analysis is a macro environmental framework used to understand the impact of the external factors on the organization. PESTLE stands for "Political, Economic, Social, Technological, Legal and Environment” factors.
PEST (political, economic, socio-cultural and technological) is a framework of macro environment factors used in the environment scanning component to analyze the impact of these factors on an industry. Canada post is under pressure from all the above forces and ultimately these have direct influence on organization ability to achieve its goals and their strategy
In this essay I will be discussing and critically analysing each element of the PESTLE analysis within the hospitality industry, with examples to reflect each point. Also this essay will discuss how marketers should adapt to changes in the macro-environment. The PESTLE analysis is a marketing principle used to understand the relation between a company and the external environment. Murray-Webster (2010:88) states PESTLE analysis will help to capture understanding about aspects of the context by using the prompt political, economic, sociological, technological, legal and environment.
PEST Analysis involves identifying the political, economic, social and technological influences on an organization. It is increasingly useful to relate such influences to growing trends towards globalizations-of possible futures, to consider the extent to which strategies might need to change.
PESTEL analysis is the technique where political, economic, socio-cultural, technological, environmental, and legal factors are evaluated to identify external forces that impact market’s growth or decline. Assessment of the external environment helps to recognize key drivers and create a development strategy for the company.
The deep analysis of the macro-environment is key to the organisations in order to understand which factors are impacting their operations. The main purpose of PESTLE analysis (Political, Economic, Social, Technological, Legal and Environmental) is to identify those factors that have an impact on the organisation but are outside its control area. Together with other frameworks (such as Porter’s ‘5 forces’), PESTLE framework is required to develop a comprehensive analytical strategic process.
This section applies the PEST analysis framework in order to understand the macro environment and considers the renewable energy industry as a whole within the current political, economical, socio-cultural and technological landscape.
In analyzing the macro-environment, it is important to identify the factors that might in turn affect a number of vital variables that are likely to influence the organization's supply and demand levels and its costs (Kotter and Schlesinger, 1991; Johnson and Scholes, 1993). The "radical and ongoing changes occurring in society create an uncertain environment and have an impact on the function of the whole organization" (Tsiakkiros, 2002). A number of checklists have been developed as ways of cataloguing the vast number of possible issues that might affect an industry. A PEST analysis is one of them that is merely a framework that categorizes environmental influences as political, economic, social and technological forces. Sometimes two additional factors, environmental and legal, will be added to make a PESTEL analysis, but these themes can easily be subsumed in the others. The analysis examines the impact of each of these factors (and their interplay with each other) on the business. The results can then be used to take advantage of opportunities and to make contingency plans for threats when preparing business and strategic plans (Byars, 1991; Cooper, 2000).
Pestle analysis is the tool to analyze the external environment of the business. It takes the different factors according to which the opportunities and threats can be analyzed and the actions plan can be made.
A PESTEL analysis is a framework or tool used by marketers to analyse and monitor the macro-environmental (external marketing environment) factors that have an impact on an organization. The result of which is used to identify threats and weakness which is used in SWOT analysis. (Professional Academy n.d.)
Biological pest control is the suppression of pest damage through the action of one or more natural enemies and usually involves an active human role.
The PEST Analysis for PC market in UK. Changes in interest rates, exchange rates, technology and the law are all external factors, which can affect a firm. These factors can affect the firms’ costs, or the market as a whole. Changes that take place in the external environment can be evaluated and analysed using a PEST analysis. To analyse the firms’ external environment, the following headings are used.
Pest infestation can put your food product and your health at risk because the pest introduce the bacteria that can contaminate the food and cause diseases. Pest such as flies, cockroaches, rat, mice, birds, ants are the main sources of food contamination. There are a lot of measures can be taken to control the pest. Windows and doors in a food preparation area or food premises that open from time to time to the outside should be screened and repair the defects in the building wall, crack in the windows and gaps around the pipes. This is to prevent the access of the pests. Besides that, electronic fly killers should be installed to control flies that can spread pathogens to our food and cause food poisoning. This device works by attracting the flying insects to a blue ultra-violet light and then electrocuting them. Moreover, using of fly spray is not allowed to kill the pest because fly spray may contain some chemicals, and will cause some possible contamination to the food stuff. In addition, regular checking and inspecting for the signs of pests like rodent droppings, insect egg cases and dead insects should be carried out in order to keep them out of the food preparation and storage area. Moreover, a licensed pest controller can be hired to visit the food premises regularly. Furthermore, all the food areas should be kept in a clean condition. Food spillages should be avoided as it may attract pests.
Most of the time Legal ingredients are separated from the political ingredients mostly because of the growing legal influences external in the national political system, such as European and regional legislation (Strategy Survival Guide).