Pest Analysis (Air Asia)

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Pest Analysis (Air Asia)

By | November 2010
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Introduction
PEST Analysis is the Political, Economic, Social culture and Technology analysis that a company does to determine the overall business environment. A PEST analysis is a look at the external environment of a company or a business that plays an important role in managing and decision making of a company. It is crucial for a company to consider its environment before relating with the public or customers. The PEST analysis examines the impact of each of the factor on the company. Thus, political factor considers the impact of legislatives changes, stability of the economy and event that related with the government and politics that may affect the business. Influence of economy, such as interest rate, stability of economy, inflation levels and such helps the company make better decision on how to operate their company effectively. Besides that, the social drive is a crucial part on PEST analysis. Creating and developing a social culture takes time and effort and a new motive driven company such as Air Asia has to develop me method on how to connect with the society’s lifestyle, demographics, and media. Technological point of PEST analysis relates with competing technology development with other competitors and effective information and communication between the market and the company.

Political Analysis

Political Analysis mainly states about the aviation acts and regulation which needed by aviation company such as Air Asia to operate their business. The political arena has a huge influence upon the regulation of businesses, and the spending power of consumers and other businesses. Political stability is inessential to create a safe economy market that enables the market to grow. Political issues may cause problems in the outcome of the company. Some of the political factors that may affect a company are events that affect the operation of the company; therefore regarding an aviation company such as AirAsia political events will affect the result...

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