A PEST analysis is a business measurement tool. PEST is an acronym for political, economic, social and technological factors, which are used to assess the market for Success.
Political factors include tax policy and environment issue. Success need to satisfy that the political environment in the countries which they wish to explore is satisfactory. Political environment include legal issues. Legal factors which Success operates include company law, employment law, health and safety, data protection and environmental consideration.
The economic factors are an important influence at local and national level. It will cover the overall growth or fall in gross domestic product (GDP) which will affects the demand for products. An understanding of local trends also important to explore a new market. Interest rates determine how much to borrow in order to invest new products. Factors of exchange rates will affect the price of Success product overseas.
The social environment for Success would highlighted factors of geography and household. The concentration of population into certain geographical areas and size of household will affect the demand for products. Move to a casual flexible workforce can impact on employment policies and approaches to managing work.
Technology enables new products to be develop in order to serve the marketing demand. It increases manufacturing productivity and reduced productivity costs. Technology also help Success communicate more effectively with their clients either local or overseas.
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