Unit 1.5 The external Environment PEST analysis (and other variants)
PEST analysis Political factors Economic factors Socio-cultural factors Technological factors
PEST analysis This has many variants such as STEEPLE which distinguishes between: Social/cultural Technological Economic Environmental Political Legal Ethical
Political/legal Monopolies legislation Environmental protection laws Taxation policy Employment laws Government policy Political Patronage Political Confidence/Stability International trade laws
Economic Factors Inflation Employment Tax and disposable income Business cycles Consumer confidence Exchange rates
Sociocultural factors Demographics (including growth of multi- culturalism) Distribution of income Social mobility Lifestyle changes (Breakdown of traditional family) Consumerism (both partners working so high incomes but lack of time for leisure etc) Levels of education Environmental and ethical norms of society
Technological New discoveries and innovations Speed of technology transfer Rates of obsolescence Internet and decline of “brick” retailing. Information technology and production (JIT etc)