Ikea Pest Template
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- Date Submitted: 10/20/2014 02:07 PM
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PEST
In addition to the industry factors that can affect a company's performance, there are also a number of outside factors that play a role in how successful businesses can be. In order to determine how big a role those external factors play, many organizations conduct a PEST analysis. PEST is an acronym for political, economic, social and technological.
PEST Factors
Political
This factor looks at how government regulations and legal issues affect a business’s chance to be profitable and successful. Issues that must be considered include tax guidelines, political stability, trade regulations, employment laws and safety regulations. These can change the way a business works or can change plans they had set in the future, slowing them down in their expansion.
Economic
This factor examines the outside economic issues that can play a role in the company’s success. Items that must be looked at include economic growth, exchange, inflation and interest rates, the current business cycle of the country where the company is located in and unemployment policies.
Social
This issue analyzes the demographic and cultural aspects that can help determine whether a business can compete in the current market. These factors help businesses examine consumer needs and what pushes them to make purchases. Among the items that should be examined are country demographics, population growth rates, age distribution, attitudes toward work, lifestyle changes, education and environmental and health consciousness.
Technological
This factor takes into consideration the technology issues that impact how an organization brings its product or service to the marketplace. Depending on the technology available, it can make it easier or harder to enter the industry and increase production level. Among the specific items that need to be considered are any new technology advancements, government spending on technology research, the life cycle of current technology, the role of the Internet...
In addition to the industry factors that can affect a company's performance, there are also a number of outside factors that play a role in how successful businesses can be. In order to determine how big a role those external factors play, many organizations conduct a PEST analysis. PEST is an acronym for political, economic, social and technological.
PEST Factors
Political
This factor looks at how government regulations and legal issues affect a business’s chance to be profitable and successful. Issues that must be considered include tax guidelines, political stability, trade regulations, employment laws and safety regulations. These can change the way a business works or can change plans they had set in the future, slowing them down in their expansion.
Economic
This factor examines the outside economic issues that can play a role in the company’s success. Items that must be looked at include economic growth, exchange, inflation and interest rates, the current business cycle of the country where the company is located in and unemployment policies.
Social
This issue analyzes the demographic and cultural aspects that can help determine whether a business can compete in the current market. These factors help businesses examine consumer needs and what pushes them to make purchases. Among the items that should be examined are country demographics, population growth rates, age distribution, attitudes toward work, lifestyle changes, education and environmental and health consciousness.
Technological
This factor takes into consideration the technology issues that impact how an organization brings its product or service to the marketplace. Depending on the technology available, it can make it easier or harder to enter the industry and increase production level. Among the specific items that need to be considered are any new technology advancements, government spending on technology research, the life cycle of current technology, the role of the Internet...