an example of PEST analysis please
http://www.google.com/search?source=ig&hl=en&rlz=1G1GGLQ_ENUS308&q=pest+analysis+example&aq=0&aqi=g10&aql=&oq=PEST+analysis+&gs_rfai=
http://www.thetimes100.co.uk/theory/theory--slept-analysis--235.php
Certainly! PEST analysis is a framework used to examine the external factors that can affect an organization or a business. It stands for Political, Economic, Social, and Technological factors. Let's explore an example:
Let's assume that you are analyzing a new market entry strategy for a technology company wanting to expand into a foreign country. Here's how you would conduct a PEST analysis:
1. Political: Start by analyzing the political factors. This involves looking at the political stability, government policies, laws, regulations, tax policies, and trade agreements of the target country. Consider questions like: Are there any political risks or uncertainties that may impact the business? Are the government regulations favorable for foreign companies? How does the government support or restrict technology companies?
2. Economic: Next, assess the economic factors. This includes analyzing the economic conditions, GDP growth, inflation rates, exchange rates, labor costs, disposable income, and consumer spending patterns in the target country. Ask questions like: Is the economy stable and growing? Are consumers willing to spend on technology products? What are the labor costs and how might they impact the business profitability?
3. Social: Move on to analyze the social factors. This involves understanding the demographics, cultural norms, consumer behavior, lifestyle trends, education levels, and social attitudes in the target market. Consider questions like: What are the social attitudes towards technology adoption? How does the local culture impact consumer preferences? Are there any specific cultural or ethical considerations that need to be addressed?
4. Technological: Lastly, examine the technological factors. This includes evaluating the level of technological advancement, infrastructure, internet penetration, innovation capabilities, and regulatory frameworks related to technology in the target market. Ask questions like: How advanced is the technology infrastructure? Are there any technological barriers or limitations that need to be overcome? What are the trends and developments in the tech industry?
By considering these factors and thoroughly evaluating the external environment using the PEST analysis framework, you can gain valuable insights and make informed decisions about entering a new market or expanding your business. Remember, PEST analysis is a flexible tool that can be adapted to various situations and industries.