PEST Analysis of Proton

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.

Exchange Rates: The Exchange Rates are other important global factors for which company’s ultimate revenue is affected. For example sudden major change in the Exchange rate of UK with other countries is a great threat or facility for TESCO PLC business.

(4) Cultural and social environment, consumers’ behaviour and life style that have effect on business.

G.G. Dess, G.T. Lumpkin, M.L. Taylor, A.A. Thompson, and A.J. Strickland III, Strategic Management (Boston, McGraw Hill, 2004) pp. 141-148.

Technological factors – New technologies may create new products and new processes (Company Regulations.com; 2011). Technology will reduce cost, improve quality and lead to innovation. Developments such as Wi-Fi hotspot in the mini buses, MP3 players, online devices

New, high-tech product. Could be destabilized by introduction of much lower cost alternative in a few years.

A Social Issue is where a whole society or a group of people within the society by affected by a specific problem which usually take a large number of people within the society to rectify or solve the problem at hand.

Currency exchange rates: exchange rates are the factor to make decision when people want to choose travel choices. The impacts are relatively in short-term and affect to the demand for international travel.

Hubbard, G, Rice, J and Beamish, P 2008, Strategic Management, Pearson Education Australia, 3rd, Frenchs Forest, Australia.

Hitt, M., Ireland, R., Hoskisson, R. (2013) Strategic Management: Competitiveness & Globalisation, 10th edition, Cengage Learning

The knowledge and understanding of technology is very high in this industry as technological innovation is necessary for the success of the firm in an

Social problems are the general factors that affect and damage society. A social problem is normally a term

In terms of the economic environment, inflation, currency fluctuations, taxation, tariffs and increased interest rates are strongly affect Australian economics. Also directly and indirectly affects HTC’s financial performance. Stakeholder’s income and purchasing power are

Technological - how the rapid pace of change in production processes and product innovation affect a business.

Economic factors the main impact every product and service is inflation. When there is inflation it has a ripple effect on all products and services. As a result companies incur an increase in their cost of production, and that leads to an increase in retail and wholesale prices. This can decrease the consumer buying