Pest Analysis in Business Environment

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Table of Contents

Part 1. PEST Analysis in Business Environment

1. Introduction 2
1.1 PEST Analysis Execution2
Political Environment2
Economical Environment2
Social Environment3
Technological Environment 3

Part 2. Case Study On Organizational Business Strategy

2. Vodafone - Using Technology To Improve Economies .............................................................4
2.1 PEST factors affecting in different ways................................................................................5
Political Impact on British Airways5
Economical Impact on McDonald’s5
Social Impact on McCain5
Technological Impact on Tesco Plc 6

Part 3. Understanding of Service Sector Management ( Personal Reflection )

3. CONCLUSION. 7
3.1 Vodafone SWOT analysis......................................................................................................7
Problems and Solutions8

REFERENCES……………………………………………………………………………………………………………………….9

PART - 1
“If an organization is to be successful it must either fit into the environment in which it operates or manipulate it to suit its objectives. Discuss the implications and relevance of these approaches using an established organization to illustrate your arguments.” INTRODUCTION

PEST Analysis is a simple, useful and widely-used strategic planning tool that helps to evaluate Political, Economic, Socio-Cultural and Technological environment. It involves an organisation considering the external environment before starting a project. As such, it is used by business leaders worldwide to build their vision of the future. It is important for different reasons. First, by making effective use of PEST Analysis, it ensures the job to be lined up positively with the powerful forces of change that are affecting our world. By taking advantage of change, it’s possible to spot opportunities and exploit them in the wider business environment. Second, good use of PEST Analysis helps an organization to anticipate future difficulties and take action to avoid or minimize their effect. Thirdly, PEST is useful when the business must start operating in a new country or region. Use of PEST helps management break free of unconscious assumptions, and helps quickly adapt to the realities of the new environment. PEST ANALYSIS EXECUTION

A PEST analysis will need to be performed for all countries of interest. Below are the interpretations of all four factors of PEST Analysis:- Political
It refers to a governmental policies which influenced by the economic situation in a country. It deals with a macro aspect of an analyse which involved key changes to the policies of a country. It has influence to the business sectors as well as confidence of investors. Such policies may include incentives, tax, quota, etc. On the other hand, the political stability in the country has great influence to the confidence of investors.. Example: Reduction in import duty of floor tiles for ceramic industry can have its fair share of influence to the industry. It is viewed as positive to the local ceramic manufacturer as imported tiles are more costly. However, it is negative impact to importers such as traders of such a product. 2) Economic

This economic factor is an area where macro economic environment can affect the business outlook and its competitiveness. Some key factors of macro economic are economic growth, exchange rate, interest rate, etc, All these factors have an effect to the profitability and cost of doing business in that business industry. Example: Unstable interest rate give rise to uncertainty to the cost of a business and it can be viewed as a Threat to do business. 3) Social

This is Social factor that reflects the cultural aspects...
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