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MKT 3328: Retailing: PEST Analysis

PEST Analysis

PEST Analysis is a simple but important and widely-used tool that helps you understand the big picture of the Political, Economic, Socio-Cultural and Technological environment you are operating in.

 

Political Economic Social Technological
Here government regulations and legal factors are assessed in terms of their ability to affect business environment and trade markets. Through this factor, businesses examine the economic issues that are bound to have and impact on the company. With the social factor, a business can analyze the socio-economic environment of its market via elements like customer demographics, cultural limitations, lifestyle attitude, and education How technology can either positively or negatively impact the introduction of a product or service into a marketplace is assessed here.
Environmental Regulations Economic Growth Income distribution Government research spending
Tax policies Interest rates and monetary policies Demographics, population growth Industry focus on technology
International Trade Regulations Government Spending Labor / social mobility New inventions and development
Contract enforcement laws Unemployment policy Lifestyle changes Rate of technology transfer
Employment laws Taxation Work/Career attitudes, entrepreneurial spirit Life cycle of technologies
Government organization, attitude Exchange rates Education Energy use and costs
Competition regulation Inflation rates Fashion, trendsIncome distribution (Changes in) IT usage
Political stability Stage of the business cycle Health consciousness, welfare (Changes in) Internet Usaage
Consumer Protection Consumer confidence Living conditions (Changes in) Mobile Technology