We carry out a PEST analysis to examine political, economic, social and technological factors on our business and we can use our findings to take advantage of opportunities that may arise and also be prepared to face possible threats that may come our way.
The use of PEST analysis will help our business to effectively adapt to the realities of the new environment and help us to create a marketing plan that will be effective and which will therefore enable our business to compete in the market.
Ireland is a neutral country therefore war and terrorism is very scarce in this part of the globe. So setting up a business in Ireland is quite safe. We are a small, private limited company and are main headquarters is based in Dublin which is the capital of Ireland which experiences little conflict with other counties and various countries that we might have to deal with world wide.
Because we imports our goods from China we have to pay taxes. We have to pay VAT (Value Added Tax) of 21% and also pay for shipping costs which are quite cheap and due to economies of scale where the average cost per unit that we produce falls sue to a large amount of output.
The Irish government is very lenient when it comes to price regulations. There are virtually no controls on prices in Ireland. This means that their is no legislation what the maximum or minimum price for any product should be. This allows are company to have flexibility in are pricing and it allows us to change the price of our product whenever we want without having to consult the government about it.
The economic crash has plummeted Ireland into a great depression. The inflation rate was last reported at a low 2,1 percent in February. Unemployment has increased even further leading consumers to spend less which could end up being a huge problem for our company if we want to grow in the near future.
However we don’t have to worry too much...
Please join StudyMode to read the full document