Pest Analysis in Business Environment

2678 WordsSep 1, 201011 Pages
Table of Contents Part 1. PEST Analysis in Business Environment 1. Introduction 2 1.1 PEST Analysis Execution 2 Political Environment 2 Economical Environment 2 Social Environment 3 Technological Environment 3 Part 2. Case Study On Organizational Business Strategy 2. Vodafone - Using Technology To Improve Economies .............................................................4 2.1 PEST factors affecting in different ways................................................................................5 Political Impact on British Airways 5 Economical Impact on McDonald’s 5…show more content…
All these factors affect the workforce management include productivity and cost. Example: Switch in job preference from heavy to light effort has great impact to the business sectors especial for those in the heavy industries. Workers tend to shy away from working there 4) Technological The Technological factor which is easy to validate as it is more tangible than the earlier three factors. It deals with environmental aspects, technology incentives such as Research & Development incentives, automation reinvestment, high capital setup and rate of technological change in certain business. Example: Changes of consumer preference toward high quality product which can be produced with higher technology. The following grid can be used to record each factor: * Government Stability * Government type * Freedom of press, Rule of law,Bureaucracy, Corruption * Regulation/De-regulation trends * Social/Employment Legislation * Likely political change | * Business cycle change * Growth, Inflation & Interest Rates * Unemployment, Labor supply, Labor cost * Disposable income/Dristribution * Globalization * Likely Economic Change | Figure 1: PEST Analysis in Diagrammatic Format POLITICAL ECONOMICAL * Population Growth/ Age Profile * Health , Education Social Mobilty * Employment Pattern/Attitudes to work * Press, Public opinion,

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