This website uses cookies to ensure you have the best experience. Learn more

Pest Analysis

526 words - 3 pages

STEP analysis stands for Social, technological, economic and political analysis and is described as a framework of macro-environmental factors used in the environmental scanning component of strategic management. In some circles it has been referred to as PEST and some analysis added Legal, Environmental, Education and Demographic factors giving it a range of names such as PESTLE and STEEPLED among others. STEP is a part of the external analysis when conducting a strategic analysis or doing a market research, and gives an overview of the different macro-environmental factors that the company has to take into consideration. It is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations.
Social factors include the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and ...view middle of the document...

They may determine barriers to entry, minimum efficient production level and influence outsourcing decisions. Furthermore, technological shifts can affect costs, quality and lead to innovation.
- R&D aspects (a number of University supporting R&D can help on sustainability)
- Automation (scale of growth of plantations and also to meet the growing market; to meet HACCP standards automation improves on reducing contamination)
- Technology incentives
- Rate of technological change
- Impact on Barriers to entry
- Minimum efficient production
- Costs, quality and lead to innovation

Economic factors include economic growth, interest rates, exchange rates and the inflation rate. These factors have major impacts on how business operate and make decisions. For example interest rates affect a firm’s cost of capital and therefore to what extent a business grows and expands. Exchange rates affect the costs of exporting and the supply and price of imported goods in the economy.
- Economic growth (strong trade links with the global markerts e.g. President making ties with these; Strong GDP in SA making it a good investment environment but prone to destabilisation e.g. via global economic shocks e.g. recession 2009)
- Interest rates (in SA allows for borrowing)
- Exchange rates (gaining making exports expensive)
- Inflation rate
Political factors, are how and to what degree a government intervenes in the economy. Specifically, political factors includes areas such as tax policy, labour law, environmental law, trade restrictions, tariffs, and political stability. Political factors also include goods and services which the government wants to provide or be provided (merit goods) and those that the government does not want to be provided (demerit goods or merit bads). Futhermore, governments have great influence on the health, education, and infrastructure of a nation.
- Tax policy
- Labour law
- Environmental law
- Trade restrictions
- Tariffs
- Political stability
- Merit goods
- Demerit goods

Other assignments on Pest Analysis

Floogen Essay

435 words - 2 pages secure 45% delivery share there by 2011. However, Airbus needs to be mindful of supply chain risks from its vast supplier network- the A380 was delayed by 2 years resulting from production issues, causing Airbus’s share price to drop (26% in 2006) and reduced earnings by €4.8 billion in 2010. The aerospace industry is still growing rapidly especially within Asia. PEST analysis has shown that political and economical factors, e.g. deregulation and

Marketing Essay

1046 words - 5 pages that can be used to add structure to the situation analysis: * 5 C Analysis - company, customers, competitors, collaborators, climate. Company represents the internal situation; the other four cover aspects of the external situation * PEST analysis - for macro-environmental political, economic, societal, and technological factors. A PEST analysis can be used as the "climate" portion of the 5 C framework. * SWOT analysis - strengths

Marketing Strategies

1715 words - 7 pages Unit 03: Introduction to Marketing – Major Assignment 1 1: Situation Analysis and its Applications. Situation analysis can be divided into SWOT and PEST analysis. It is aimed at collecting and evaluating data which will help identify circumstances which may influence the organisation in a positive or negative way, and affect its choice of strategies. SWOT analysis examines the internal aspects of the organisation which characterize its

M And S

408 words - 2 pages needs and wants of the customers demands. PEST ANALYSIS OF M&S POLITICAL FACTOR: In modern organization there was a lage affects of the global politics. With this political factor it may impede the development of the better organization. ECOMONIC FACTOR: M&S these organizations are highly allocated with the economic factors. In this stage while standard of living of people results to rise the business senerio. SOCIAL FACTOR: The

Sasa

2452 words - 10 pages PEST Analysis for a Company in the Tourism Industry  The Tourism industry is one of the fastest growing industries in the  world. The World Travel and Tourism Council estimates that in 2004  Travel and tourism is expected to generate  * US$ 5,490.4 billion of economic activity  * 10.4% of total GDP  * 214,697,000 jobs or 8.1% of total employment  * 12.2% of total exports [1]  My task is to conduct a PEST analysis for a

Competitive Positioning For Nestle

1008 words - 5 pages for hygienic layered complete packing. In this report we study the corporation, its background, the financial and competitive strength in market of their product “NESTLE EVERYDAY GHEE”. Table of contents: 1. Introduction to company and product background 2. Market analysis of Milk products - ghee 3. SWOT 4. PEST 5. Ansoff model with Mckinsey 7S model 6. Customer traits with segmentation 7

Effect Of Organic And Inorganic To Pechay In Drought Condition

1627 words - 7 pages , weight of marketable leaves, weight of marketable plant, number of leaves per plant and the leaf area infestation. Except for leaf area pest infestation, result showed that those plants applied with vermicompost manifested the highest mean, though insignificant differences existed (P>.05) Hence, use of organic fertilizer is comparable with the use of urea in pechay production. It is recommended to organic farmers and gardening

Dynamic Strategic Alignment

4052 words - 17 pages - ENVIRONMENT INDUSTRY ENVIRONMENT 2.1 PEST PEST PEST + 5-FORCES This framework elicits the Political, Economic, Social and Technological features that affect a firm’s strategic choices, execution and performance. A PEST analysis should be done at two levels: the “macro” environment—the region or country overall—and the specific industry in which the firm operates. Table 1 provides examples of features under these four groupings that describe

Cim Case Analysis 2014

660 words - 3 pages 1.0 SWOT ANALYSIS 1.1 STRENGTHS | Yeo Valley farms (production) Ltd is a private limited company and operates in the farming and dairy processing business, mainly in the UKIt operates mainly in the organic dairy market The family business was taken over by TIM Mead in 1990, together with his mother, they have developed a strong brand in the Yeo valley Organic rangeYeo Valley stated production of organic yoghurts in 1993 and introduced its

Strategic Management

1180 words - 5 pages , how do you play, what are your capabilities, how do you measure? 5. What is the nested choice cascade? You ask these at the senior level but they cascade down Corporate level, business level, functional level strategies 6. Describe the strategic-management process. External Analysis (Opportunity, Threat PEST, 5 forces) Direction-> Strategies -> Implementation Internal (Capabilities, VIRO) 7. What are the

Conservation Of Cash

3483 words - 14 pages terms that are being provided to their retailers. The report analyzes how environmental changes can affect consumer behaviors, which may negatively impact the retail landscape. The Pest analysis revealed an overview of how the economic downturn impacts political, economic and social outlook in the consumer world and how it may affect COMPANY A’s ability conserve cash. The report concludes with the SWOT analysis, providing insight on how

Similar Documents

Pest Marks And Spencer Essay

401 words - 2 pages Political According to "BBC News 30th January 2006" Marks & Spencer would be the first retailer to go down the Fair-trade route on both clothing and food. The fair-trade policy, include cut salt and fat in M&S foods, recycled packaging and animal welfare protection. Marks & Spencer Chief Stuart Rose noted, "Customers want good value, but they care more than ever how food and clothing products are made" (BBC, 2006). Economic

Integrated Pest Management Fo Rlady Beetle

2319 words - 10 pages THE GAMBIA COLLEGE SCHOOL OF PUBLIC HEALTH COURSE: EHS 311: INTEGRATED PEST MANAGEMENT  TOPIC: LADY BEETLE Presented by: Omar ceesay GC # 214426 Submitted to: LECTURER: Mr. Fabakary minteh DATE: 9TH MARCH 2015  Lady beetles, also known as “ladybugs” or “ladybird beetles”, are familiar insects

Business Essay

1578 words - 7 pages , of my paper will be where I first began to set my vision for the course. In this section, I will bring in information I have gleaned from the self-assessments that I completed in this milestone. In section two, also milestone two, I will briefly explain and present my work from the SWOT analysis. In section three, also milestone three, I will present my work from my PEST analysis and briefly explain what I learned from the analysis. Section

Student Essay

3934 words - 16 pages analysis PEST analysis Porter’s five forces analysis four corner’s analysis value chain analysis early warning scans war gaming. An overview of these strategic analysis tools will be provided in this topic gateway. 3 Topic Gateway Series Strategic Analysis Tools Context In the current CIMA syllabus, students will study and may be examined on strategic analysis tools as part of the Management Level Paper 5, Integrated Management