Importance of the PEST-C Analysis Essay

Importance of the PEST-C Analysis Essay

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Environmental analysis is extremely beneficial when a company is considering to do business in an international market economy. It is important to analyse the "environments" of international business marketing before entering a new economy. The central areas of consideration include a country‘s political, legal, economic, technological, and cultural aspects. These five environments form the common acronym, "PEST-C." The term, PEST-C, is widely used in today's business world. Each environment within the acronym must be considered individually to help develop an understanding of the country. The most important PEST-C variable, culture, should be looked at in the most detail. Also, it must be kept in mind that these ecosystem attributes (PEST-C) are not to be viewed as independent "silos," but rather as multidimensional and nonlinear inputs.
By observing the PEST-C variables, international businesses are able to make smarter choices in their global marketing decisions. These attributes that must be thoroughly understood and analysed in order to succeed in the international marketplace. All of the variables relate to global marketing. Global marketing can be defined as marketing on a worldwide scale. All variables must consider the understanding of the advantages of global operational differences, similarities, threats, and opportunities that can be used to meet international objectives.
Marketing managers are also tasked with the responsibility of “wringing the pennies out of the activities.” Basically, they are responsible for and add value to their activities that will contribute to a higher value in the mind of their consumers. Managers must understand the role of their supply chain to accommodate international customer prefer...


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...their respect to tradition, compared to their perseverance to change. A low Long-Term Orientation, for example, may mean that people prefer to value actions that are affected by the short-term outlook, and have a concern for stability.
All in all, we must keep in mind that these ecosystem attributes (PEST-C) are not to be viewed as independent "silos," but rather as multidimensional and nonlinear inputs. For example, the significantly different ecosystem attributes (PEST-C) have resulted in two very different nations in Korea. The very different political ideologies of North and South Korea have produced dramatically different business environments. Any change in a PEST-C variable, especially a change in culture, may dramatically affect a company’s plan to expand. These variables must be considered and understood before conducting international business.





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