Factors Affecting The Business Operations And Decision Making Of The Organization

1399 Words Dec 11th, 2016 6 Pages
PEST or PESTLE analysis (political, economic, social, technological, legal and environmental) It is a strategic tool for understanding market growth or decline, business position, potential and direction for operations. The PEST is an analysis done to an organization but can also be related to several departments altogether.
PEST analysis includes four factors:
• Political factors are basically how the government intervenes in the economy. Specifically, political stability, tax policy, employment and labor law, environmental regulations, trade restrictions, tariffs, etc.
• Economic factors affect the business operations and decision making of the organization. It’s including economic growth, interest rates and inflation rate.
• Social factors include the cultural aspects and health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety.
• Technological factors affect the cost and quality of the outputs. These also determine the barriers to entry and minimum efficient production level. This includes, automation, technology incentives, rate of technological change and R&D activity.
• Legal factors include discrimination law, consumer law, antitrust law, employment law, and health and safety law. These factors can affect how a company operates, its costs, and the demand for its products.
• Environmental factors refer to ecological and environmental aspects such as weather, climate, and climate change.
Australia is located in Oceania…
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