PEST analysis means it is worried with the environmental influences on a business. And the structure of the business pattern One method of planning your business is to undertake a PEST analysis. PEST analysis involves looking at the Political, Economic, Socio-cultural and Technological factors that could affect your company. The identification of the influences of PEST is a manner useful to summarize the outside environment in which businesses function. However, it must continue by thought in the way in which businesses be supposed to answer these influences.
The business is depend on Politics of the country because policies are depend in politics and the same time the government can decide many things such as tax policy, business policy etc. Same time if the politics of the company is not strong or not stable again the problem is arise in the business of uncertainty, threat etc. so this environment really effect to the business , Heavy taxes and tariffs some countries and make Skoda increase there auto mobile price. Political sanctions, aggression and terrorism make several restriction to develop globally in Asia market
The whole economy of the country or world can be effect the business. If the world is going through recession, facing unemployment than business will not be succeed in the true manner.If the per capita income of the country become low than there is a chance of collapsed for business. Fuel cost rise and fall affect the cost and that reflects on the price automobiles, so that might change the consumer behavior towards so skin tone of automobile. It had newly acquired SKODA authority thus manufacture it a complete move backward and forward in control set global competitors
SOCIAL AND CULTURAL FACTORS
Social and Cultural factors really influence the business. Business always respects the society where it operates. If the society of people are...