PEST ANALYSIS
A scan of the external macro-environment in which the firm operates can be expressed in terms of the following factors:-
P-Political
E-Economic
S-Social
T-Technological
Sometimes Pest is also arranged as STEP, It is used to describe a framework for the analysis Fits into an overall environmental scan as shown below
ENVIRONMENTAL SCAN
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External Analysis Internal Analysis
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Macro environment Microenvironment
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P.E.S.T.
Political Factors:-
Political factors include government regulations and legal issues and define both formal and informal rules under which the firm must operate. Some examples are
• Tax policy
• Employment policy
• Environmental regulations
• Trade restrictions and tariffs
• Political stability government term and change
• current legislation home market
• future legislation
• international pressure groups
• wars and conflict
• trading policies
• government policies
ECONOMIC FACTORS:-
Economic Fac ...