Pest Analysis
Pest Analysis
Demonstrate an understanding of PEST analysis (macro-environmental assessment) by identifying the key factors of change in the environment for an organization of your choice. Critically analyze the impact of these changes on the market and the corresponding strategies to tackle these changes.
I would like to propose milk powder in the mainland China as an example to illustrate the PEST analysis.
Political - The political arena has a huge influence upon the regulation of businesses, and the spending power of consumers and other businesses.
➢ In the mainland China, the government had passed regulation limiting families to one child each in 1970s. People used to have four or five children in their families and now reduced to one or two. As a result, the birth rate had been declined significantly in the past decades. Less and less infants are born which means that the sales of the milk powder to the families for their infants would be declined as well.
➢ The Chinese government was running protectionism which meant that it imposed heavy taxes on the imported good. Most of the milk powder was transported to mainland. The selling price of milk powder was very high.
Economical - Marketers need to consider the state of a trading economy in the short and long-terms in which affect the consumer purchasing power and spending pattern.
➢ The economy in China had been booming in the past decades. People’s incomes have been increased among the cities. They are willing to spend more on their child. They are much more affordable to purchase the milk powder for their child
Social & Cultural - The social and cultural influences on business vary from country to country. It is very important that such factors are considered.
➢ For the traditional Chinese people, most of the people feed their infant with their breast milk. As a substitute, milk powder thus becomes less important. However, the education level is much higher than that before. People know the
Demonstrate an understanding of PEST analysis (macro-environmental assessment) by identifying the key factors of change in the environment for an organization of your choice. Critically analyze the impact of these changes on the market and the corresponding strategies to tackle these changes.
I would like to propose milk powder in the mainland China as an example to illustrate the PEST analysis.
Political - The political arena has a huge influence upon the regulation of businesses, and the spending power of consumers and other businesses.
➢ In the mainland China, the government had passed regulation limiting families to one child each in 1970s. People used to have four or five children in their families and now reduced to one or two. As a result, the birth rate had been declined significantly in the past decades. Less and less infants are born which means that the sales of the milk powder to the families for their infants would be declined as well.
➢ The Chinese government was running protectionism which meant that it imposed heavy taxes on the imported good. Most of the milk powder was transported to mainland. The selling price of milk powder was very high.
Economical - Marketers need to consider the state of a trading economy in the short and long-terms in which affect the consumer purchasing power and spending pattern.
➢ The economy in China had been booming in the past decades. People’s incomes have been increased among the cities. They are willing to spend more on their child. They are much more affordable to purchase the milk powder for their child
Social & Cultural - The social and cultural influences on business vary from country to country. It is very important that such factors are considered.
➢ For the traditional Chinese people, most of the people feed their infant with their breast milk. As a substitute, milk powder thus becomes less important. However, the education level is much higher than that before. People know the