PEST analysis stands for “Political, Economic, Social and Technological analysis” and is used for business and strategic planning, marketing planning, organizational change, business and product development and research reports.
A political factor relates to the pressures and opportunities brought by political institutions and to what degree the government policies impact the business. Political factors are basically to what degree the government intervenes in the economy. Specifically, political factors include areas such as tax policy, labor law, environmental law, trade restrictions, tariffs, and political stability. Political factors may also include goods and services which the government wants to provide or be provided and those that the government does not want to be provided (demerit goods or merit bad). Furthermore, governments have great influence on the infrastructure, health and education of a nation. •Government policies
•Government term and change
•Funding, grants and initiatives
•Wars, terrorism and conflicts
•Elections and political trends
•Internal political issues etc.
Economic factors relates to economic policies, economic structures and to what degree the economy impacts the business. Economic factors are basically economic growth, interest rates, exchange rates and the inflation rate. These factors have major impacts on how businesses operate and make decisions. For example, interest rates affect a firm's cost of capital and therefore to what extent a business grows and expands. Exchange rates affect the costs of exporting goods and the supply and price of imported goods in an economy •Local economy
•International trade etc.
Social factors relates to the cultural aspects, attitudes, beliefs, that will affect the demand for a company's products and how the business operates. Social factors are basically the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. Trends in social factors affect the demand for a company's products and how that company operates. Furthermore, companies may change various management strategies to adapt to these social trends (such as recruiting older workers). •Advertising and publicity
•Media views of the industry
•Brand, company, technology image
•Consumer attitudes and opinions
•Consumer buying patterns
•Consumer role models etc.
Technological factors relates to the technological aspects, innovations, barriers and incentives, and to what degree these impact the business. Technological factors are basically technological aspects such as R&D (Research & Development) activity, automation, technology incentives and the rate of technological change. They can determine barriers to entry, minimum efficient production level and influence outsourcing decisions. Furthermore, technological shifts can affect costs, quality, and lead to innovation. •Competitor technology development
•Maturity of technology
•Research and Innovation
•Information and communications
•Intellectual property issues
GREAT QUALITIES OF A GOOD BUSINESSMAN
In the modern age we can see the various changes in the business field. Due to technological advancement it is necessary that a good businessman should possess the basic skill and knowledge about his business. Following are the important qualities of a good businessman:
Honest: - It is the first quality of a good businessman that he should honest and sincere in public dealing. There should be no fraud and commercial bribery in business. If he fails to...