Pest Analysis Essay

Political factors include the fol measlying types of instrument order such as the minimum wage or anti disparity laws. Voluntary codes and practices Market regulations Trade agreements, tariffs or restrictions Tax levies and tax breaks role of government regime eg communist, democratic, dictatorship Non conformance with legislative obligations can star to sanctions such as fines, adverse publicity and imprisonment. Ineffective voluntary codes and practices leave behind often lead to governments introducing legislation to regulate the activities covered by the codes and practices. sparing The second element of a PEST analysis involves a contract of economic factors. All businesses ar affected by national and ball- considerationd economic factors. National and global interest rate and fiscal constitution go out be set around economic conditions. The climate of the saving dictates how consumers, suppliers and other organisational stakeholders such as suppliers and credi tors behave at heart edict. An economy undergoing ecological niche leave alone have high unemployment, low spending power and low stakeholder confidence.Conversely a booming or growing economy testament have low unemployment, high spending power and high stakeholder confidence. A successful organisation will respond to economic conditions and stakeholder behaviour. Furthermore organisations will need to review the impact economic conditions are having on their competitors and respond accordingly. In this global business introduction organisations are affected by economies throughout the world and not just the countries in which they are establish or operate from.For example a global credit jade originating in the USA contributed towards the credit crunch in the UK in 2007/08. Cheaper labour in developing countries affects the competitiveness of crops from developed countries. An increase in interest rates in the USA will affect the share impairment of UK stocks or adverse weather conditions in India may affect the bell of tea bought in an English cafe. A truly global player has to be aware of economic conditions across all borders and needs to hear that it employs strategies that protect and promote its business through economic conditions throughout the world. cordial The third aspect of PEST focuses its attention on forces within society such as family, friends, colleagues, neighbours and the media. Social forces affect our attitudes, interest s and opinions. These forces shape who we are as people, the way we behave and ultimately what we purchase. For example within the UK peoples attitudes are changing towards their diet and health. As a result the UK is sightedness an increase in the number of people joining fitness clubs and a massive growth for the demand of organic food.Products such as Wii see attempt to deal with societys concern, about childrens overleap of exercise. Population changes also have a direct impact on organisations. Chan ges in the structure of a population will affect the cut and demand of goods and services within an economy. Falling birth rates will result in decreased demand and greater competition as the number of consumers fall. Conversely an increase in the global population and world food shortage predictions are currently leading to calls for greater investment funds in food production.Due to food shortages African countries such as Uganda are now reconsidering their rejection of genetically modified foods. In summary organisations moldiness be able to offer products and services that aim to complement and value peoples lifestyle and behaviour. If organisations do not respond to changes in society they will lose market share and demand for their product or service. Technological Unsurprisingly the fourth element of PEST is technology, as you are probably aware technological advances have greatly changed the manner in which businesses operate.