Political risk, for examples the Gulf war and terrorism somehow damaging passenger confidence, particularly in the US. Presence of political support and lobbying for major EU/US aerospace businesses Support of EU aircraft manufacturer for Rolls-Royce
Subsidies by EU government US tax breaks for Rolls-Royce
Carbon emissions under the Kyoto protocol is targets for reduction by EU, creating pressures for reduced impact of air travel Policy formation for example Open Skies liberalisation package (2008), allowing any US or EU-based airline to launch scheduled services between the US and EU. PEST analysis
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"PEST" redirects here. For the special forces unit of the Slovenian Military Police, see Specialized Unit for Special Tactics. PEST analysis (Political, Economic, Social and Technological analysis) describes a framework of macro-environmental factors used in the environmental scanning component of strategic management. Some analysts added Legal and rearranged the mnemonic to SLEPT; inserting Environmental factors expanded it to PESTEL or PESTLE, which is popular in the United Kingdom. The model has recently been further extended to STEEPLE and STEEPLED, adding Ethics and Demographic factors. It is a part of the external analysis when conducting a strategic analysis or doing market research, and gives an overview of the different macroenvironmental factors that the company has to take into consideration. It is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations. The growing importance of environmental or ecological factors in the first decade of the 21st century have given rise to green business and encouraged widespread use of an updated version of the PEST framework. STEER analysis systematically considers Socio-cultural, Technological, Economic, Ecological, and Regulatory factors.
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