By Mary Hall Updated June 26, — 1:
Consumer confidence and its affect on aggregate demand Production level. The social factors influence the business at various levels, and need to be carefully examined. Attitude towards foreign goods and services. Influence of language on use of products in the markets.
Time available with the consumers for leisure. Role of women and men in the society. Opinion of people on green issues. Demographics of the population. Lifestyle, education, health, fashion trends, earning capacity Technology: Technology is commonly identified as an essential element of the organization since it is a useful tool for the attainment of market advantage.
A Case Study Nike Swot Pestle Analysis PESTLE analysis refers to all the macro-environmental factors that are necessary for strategic management. It is an acronym which when expanded includes six factors when the company is contemplating to launch or upgrade a service or a product. PEST is an acronym for four sources of change: political, economic, social, and technological. PEST analysis is a powerful and widely used tool for understanding strategic risk. It identifies the. Limitations of a PEST Analysis. The external factors considered during PEST analysis are dynamic and they change at a very fast pace. At times, these changes may occur in less than a day’s time, thus making it tricky to predict why and how these factors may affect the present or future of the project.
Technology can be used, and this is affected by government support. Technological advancement can produce new industries, and also provides valuable input to service and manufacturing industries. The following are important features in this regard: Does technology permit the manufacture of products at economical rates, without compromising quality?
Do the technologies present original products, like mobile telephone, internet bankingthe purchase of books through internet, etc. The manufacture, delivery, and use of numerous Pepsi products are subject to many federal regulations, like the Food, Drug and Cosmetic Act.
The business is also governed by government and foreign rules. The international business is subjected to the political stability.
The products of Pepsi are influenced by the raw material yield being used in the soft drinks, juices, etc. All distribution is affected by the cost of fuel.
Operations in international markets involve the study of unpredictable changes in foreign exchange rate. The economic impacts of such movements are serious because these affect the growth. Pepsi is also subjected to availability of energy, supply of money, business cycles, etc.
Lifestyle has great influence on the use of Pepsi products, and their advertisements are designed accordingly. Introduction of Pepsi products in the international market requires an in depth study of the local social structure. Pepsi is influenced by the modern manufacturing techniques applicable to their business divisions of soft drinks, juices, and snack food.
Pepsi has to focus on the latest distribution techniques, and other technological advances in their industry.PEST analysis is only a strategic starting point, and has its own limitations, emphasizing the need to test the conclusions and findings against the reality.
In conducting PEST analysis, it is required to consider each PEST factor as they all play a part in determining the overall business environment.
The acronym PEST (or sometimes rearranged as "STEP") is used to describe a framework for the analysis of these macroenvironmental factors. A PEST analysis fits into an overall environmental scan as shown in the following diagram: Environmental Scan / \ External Analysis Internal. PEST Analysis Checklist Introduction PEST analysis is a useful tool for understanding the macro-environment in which an organisation operates.
The analysis involves reviewing factors which will have an impact on the organisation’s business and the. PEST analysis is an analysis of the political, economic, social and technological factors in the external environment of an organization, which can .
Pestle analysis is the analysis of entire environment that a business operates or trades to carry its business. These are mentioned in systematic factors that are beyond anyone’s control and business needs to mark out strategies. PEST is an acronym for four sources of change: political, economic, social, and technological.
PEST analysis is a powerful and widely used tool .