PEST Anaylysis

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Carlos Q


Date added:

July 10, 2013








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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...
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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...
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