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PEST Analysis of Myer

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The PEST analysis helps to explain the critical factors in the organization's external environment. The factors include political, economic, social and technological. For Myer, these forces combine with the internal factors, and other external factors like competition. The Australian consumer goods retail market is worth $121 billion (IBISWorld, 2012) but is heavily fragmented. Myer is the third-largest company in the industry behind David Jones and Harvey Norman, but with $3.158 billion in sales holds just 2.6% market share (Myer 2011 Annual Report). This implies that competition is only one of many factors that can contribute to the company's results. This PEST analysis will help to identify the other major factors.

The political environment encompasses factors such as regulations, taxation, trade policy and the legal environment. For the most part, the regulatory environment is stable, with no major changes set to affect the industry. Australia's corporate tax rate is slightly above the OECD average (Treasury.gov.au, 2012), but as all of the company's major competitors are also Australian, this is neither an advantage nor disadvantage competitively. There is currently a proposal to cut corporate tax rates, but this is meeting with opposition because of its structure, so there is doubt as to whether this will pass (Scott, 2012). The political environment may not be right for a tax cut, but tax policy affects all major competitors equally, so while such a cut would

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