Mr
Essay specific features
Written by:
Carl R
Date added:
March 1, 2014
Level:
University
Grade:
A
No of pages / words:
3 / 658
Was viewed:
5387 times
Rating of current essay:
Essay content:
A PEST analysis fits into an overall environmental scan as shown in the following diagram:
Environmental Scan
/ \
External Analysis Internal Analysis
/ \
Macroenvironment Microenvironment
|
P.E.S.T.
Political Factors
Political factors include government regulations and legal issues and define both formal and informal rules under which the firm must operate...
displayed 300 characters
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Some examples include:
• tax policy
• employment laws
• environmental regulations
• trade restrictions and tariffs
• political stability
Economic Factors
Economic factors affect the purchasing power of potential customers and the firm's cost of capital. The following are examples of factors in the macroeconomy:
• economic growth
• interest rates
• exchange rates
• inflation rate
Social Factors
Social factors include the demographic and cultural aspects of the external macroenvironment...
displayed next 300 characters
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