Pest Analysis

Topics: Dialysis, Malaysia, Bank Negara Malaysia Pages: 4 (1191 words) Published: September 10, 2010


PEST analysis is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations. In analyzing the macro-environment, it is important to identify the factors that might in turn affect a number of vital variables that are likely to influence the organization’s supply and demand levels and its costs. The radical and ongoing changes occurring in society create an uncertain environment and have an impact on the function of the whole organization. A number of checklists have been developed as ways of cataloging the vast number of possible issues that might affect an industry. A PEST analysis is one of them that is merely a framework that categorizes environmental influences as political, economic, social and technological forces. The analysis examines the impact of each of these factors (and their interplay with each other) on the business. The results can then be used to take advantage of opportunities and to make contingency plans for threats when preparing business and strategic plans. PEST also ensures that company’s performance is aligned positively with the powerful forces of change that are affecting business environment. PEST is useful when a company decides to enter its business operations into new markets and new countries. i) Political

As the government tightens the regulations on fast food advertising, MDD awaits further instructions from Malaysia’s Information Ministry. If its leading product, instant noodles, is to be classified as a “fast food”, the brand may be faced with an advertising ban and forced to explore alternative promotional channels once the mass media options are closed to it. However, this move towards greater health consciousness and nutritional awareness has been a gradual trend. As one of Malaysia's largest food producers, we constantly manage and improve our material...
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