Premium Essay

Pest Analysis

In: Business and Management

Submitted By fantong1314
Words 1936
Pages 8
PEST on Australia
Political aspect 1. Trading policies
Maintains active and diverse international trade policy agenda which combines multilateral, regional and bilateral strategies to break down world barriers to trade. Trade policies are equally based on structural economic reforms to improve its international trade competiveness, and initiatives to promote liberalization of international trade and investment rules.

Australia has good trading policies with its neighbor countries, and their trades are in favorable conditions, so operating Air Asia (AA) in Australia would be viable and there will be higher frequent business traveler. 2. Home market lobbying/pressure groups
Committed Pressure group are allowed in Australia, which is good things, because of open political system, as results consumer and the citizen are more aware about the real business situation.

Pressure groups will make the organization to think about the Corporate Social Responsibly and Ethics that it need to consider and practice in Australia. XX (company name) should come up with new business strategies which benefits environment, people and demoralizing un ethical activities.

3. International pressure group
Australia is a sophisticated and modern economy. It is open market and it has good relationship with international welfare organization High Pressure group.

In the environment, where there is high international pressure group, organizations should consider international issues and change their operation so that their daily operation, culture, functions and resources doesn’t violate the international laws.

4. Wars and conflict
No wars and Conflicts within the country, but active as Peace Keeping force in various Countries.

Australia isn’t involved in any form of war within and outside the country, so the political environment seems to be sound. Hence…...

Similar Documents

Premium Essay

Pest Analysis

...PEST and PESTLE analysis is a framework used in the environmental scanningcomponent of strategic management. Under PEST and PESTLE analysis are externalfactors which are the major players in the success and failure of an organization. Politicalfactor is the government intervention in the economy. This includes tax policy, labour andenvironmental law, trade restrictions, tariffs, and political stability. Under Economic factor iseconomic growth, interest and inflation rates. These factors directly affect the cost of capitalin business operation as well as the costs in exporting goods and the supply and price of theimported goods in the economy. Social factors include cultural aspects, population growthrate, health consciousness and age distribution while... PEST Analysis The PEST analysis is a useful tool for understanding market growth or decline, and as such the position, potential and direction for a business. 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 a business or organizational unit. Political The political area has a huge influence upon the regulation of a business and the spending power of consumers and other businesses. Before I put my product on the market I need to consider issues such as: Tax policy: I will need to look at certain levels of tax. If tax is high it can affect the incomes of customers and it might...

Words: 662 - Pages: 3

Premium Essay

Pest Analysis

...By Mashell Chapeyama PEST analysis Pest analysis is a way in which the organization evaluates how it would fare in the environment. With PEST the organization is evaluating critical factors that affect the organization. These factors are: political, economic, socio-cultural and political. This essay is going to discuss these four factors as they affect a company named Chipinge Banana Company, which is found in Zimbabwe. It is a company that specializes in growing and selling of Bananas. These bananas are sold in the country as well as other foreign markets, particularly Asia and Middle East. Political The political system is not stable. Usually there is uncertainty in relationship to land ownership. There is a threat that some farms may be taken by government for resettlement reason. Some countries do not want to do business with Zimbabwe because it has bad human rights record. Some workers may be displayed from work due to political violence. Currently, we are going towards elections which can turn to be violent. Zimbabwe has a very high taxation system in the world. One advantage is that Zimbabwe is part of free trade agreements such as comesa. Zimbabwe has many bilateral trade agreements with many countries. This means there are some favourable conditions in that we can sell some products to countries which trade well with Zimbabwe. Economic Zimbabwe has the advantage of using many currencies, including the pound, US dollars, the yen, the kwacha, and the......

Words: 2718 - Pages: 11

Free Essay

Pest Analysis

...What is PEST Analysis? A PEST analysis is an analysis of the external macro-environment that affects all firms. P.E.S.T. is an acronym for the Political, Economic, Social, and Technological factors of the external macro-environment. Such external factors usually are beyond the firm's control and sometimes present themselves as threats. For this reason, some say that "pest" is an appropriate term for these factors. However, changes in the external environment also create new opportunities and the letters sometimes are rearranged to construct the more optimistic term of STEP analysis. Many macro-environmental factors are country-specific and a PEST analysis will need to be performed for all countries of interest. The following are examples of some of the factors that might be considered in a PEST analysis. It is very important that an organization considers its environment before beginning the marketing process. In fact, environmental analysis should be continuous and feed all aspects of planning. The organization's marketing environment is made up from: 1. The internal environment e.g. staff (or internal customers), office technology, wages and finance, etc. 2. The micro-environment e.g. our external customers, agents and distributors, suppliers, our competitors, etc. 3. The macro-environment e.g. Political (and legal) forces, Economic forces, Sociocultural forces, and Technological forces. These are known as PEST factors. Political Factors The political arena......

Words: 1813 - Pages: 8

Premium Essay

Pest Analysis

...What is a PEST analysis? PEST analysis is also known as: STEP, PESTEL, PESTLE, PESTE, PESTLIED, SLEPT, STEEPLE, STEEPLED, LE PEST C and LEPEST analysis. Introduction In analyzing the macro-environment, it is important to identify the factors that might in turn affect a number of vital variables that are likely to influence the organization’s supply and demand levels and its costs (Kotter and Schlesinger, 1991; Johnson and Scholes, 1993). The "radical and ongoing changes occurring in society create an uncertain environment and have an impact on the function of the whole organization" (Tsiakkiros, 2002). A number of checklists have been developed as ways of cataloguing the vast number of possible issues that might affect an industry. A PEST analysis is one of them that is merely a framework that categorizes environmental influences as political, economic, social and technological forces. Sometimes two additional factors, environmental and legal, will be added to make a PESTEL analysis, but these themes can easily be subsumed in the others. The analysis examines the impact of each of these factors (and their interplay with each other) on the business. The results can then be used to take advantage of opportunities and to make contingency plans for threats when preparing business and strategic plans (Byars, 1991; Cooper, 2000). Kotler (1998) claims that PEST analysis is a useful strategic tool for understanding market growth or decline, business position, potential and......

Words: 2454 - Pages: 10

Premium Essay

Pest Analysis

...PEST analysis of any industry sector investigates the important factors that are affecting the industry and influencing the companies operating in that sector. PEST is an acronym for political, economic, social and technological analysis. Political factors include government policies relating to the industry, tax policies, laws and regulations, trade restrictions and tariffs etc. The economic factors relate to changes in the wider economy such as economic growth, interest rates, exchange rates and inflation rate, etc. Social factors often look at the cultural aspects and include health consciousness, population growth rate, age distribution, changes in tastes and buying patterns, etc. The technological factors relate to the application of new inventions and ideas such as R&D activity, automation, technology incentives and the rate of technological change. The PEST Analysis is a perfect tool for managers and policy makers; helping them in analyzing the forces that are driving their industry and how these factors will influence their businesses and the whole industry in general. Our product also presents a brief profile of the industry comprising of current market, competition in it and future prospects of that sector. PEST analysis of any industry sector investigates the important factors that are affecting the industry and influencing the companies operating in that sector. PEST is an acronym for political, economic, social and technological analysis. Political factors......

Words: 371 - Pages: 2

Premium Essay

Pest Analysis

...! ! ! ! ! PEST Analysis (Milestone Three) - OL 125 Southern New Hampshire University ! ! ! Not All Is In Our Power Some things in life we can control, others we cannot. We can control our behavior, our responses, and to a certain level, our personalities. We can educate ourselves how to be more productive and efficient, better team members or leaders, better communicators, or decision makers. We can train and improve our problem solving skills, people skills, management skills, or leadership skills. Other things are beyond our control. They include political, economic, sociocultural, and technological factors. Identifying these factors will help us find opportunities and threats to capitalize on our given situation. PEST Analysis is a simple and widely used tool that helps us analyze the Political, Economic, Socio-Cultural, and Technological changes in our business environment. (Mind Tools, 1996-2013) Below is an example of my own PEST analysis as it pertains to my goal of working as an accountant. Political Factors Some influencing political factors include 1) changes in taxation code, possibly implemented by newly elected administration in 2016, 2) changes in state legislation effecting tax or business laws, 3) changes in auditing laws, or 4) changes in foreign country accounting laws if working for a global corporation. My opportunity is to be proactive regarding new upcoming changes to make myself more desirable to a potential employer or to advance my career....

Words: 888 - Pages: 4

Premium Essay

Pest Analysis

...Laura Szopa December 7, 2013 PEST Analysis | Factor | Opportunity | Threat | Political | There are more drugs that are becoming controlled which means they need to be regulated and tracked. Higher standards of care are being created so now veterinary technicians must go through an accredited program in order to take the national exam. | Drugs companies will be able to increase the price for these drugs, such as Tramadol. | The more regulated some drugs are the harder it can get them. The demand will increase and so will the price. | Economic | The cost of living continues to rise. Jobs are being created but for some not fast enough. More technicians are becoming licensed. More owners are turning to health insurance plans for their pets to help off set the costs of annuals exams as well as emergency situations. | TruePet has created a wellness program to spread the cost of vaccines throughout the year which guarantees a certain amount of money to the clinic. This will hopefully mean more animals are staying up to date on vaccines, especially Rabies. | People are less likely to do procedures that are elective. Licensed veterinary technicians will expect to be paid more which will cost the clinic more. | Socio-Cultural | Owner are becoming more concerned with what their pets are eating. Some owners are turning to raw diets. Some owners feel that the veterinarians are just in it for the money. | Many pet food brands are coming up with......

Words: 511 - Pages: 3

Free Essay

Pest Analysis

...PEST Analysis One way of planning your business is to undertake a PEST analysis.1 PEST analysis involves looking at the Political, Economic, Socio-cultural and Technological factors that could affect your business. Every business needs to consider a range of external forces in order to take decisions. For many people imagination is very limited and is coloured solely by their own experience and personal beliefs. This can lead to wish fulfilment or a refusal to see reality or recognise the critical changes that are happening in the world around them. It can also lead to grabbing short-term solutions that, if they do not exacerbate problems, certainly ignore the longer term. In the business world pressure is often applied to take decisions quickly, acting on judgement and instinct rather than careful analysis. There are many driving forces in the external environment that might impact on your business. These can be categorised as: • Social; • Technological; • Economic; • Environmental; and • Political. Social forces Social forces include, for example, changing demography and education, etc. The population in Western Europe is relatively static, but the age bands are changing. The number of older people, for example, is growing rapidly. Technological forces Technological forces are changing dramatically quickly. What effects will this have on your production, marketing and distribution plans? Depending on your market, technology might either raise or lower entry......

Words: 371 - Pages: 2

Free Essay

Pest Analysis

...Different factors affecting sony company: “Analyse of the  external environment could be assist by acronym PEST, which is standing for political, economical, sociocultural, and technological factors. It is  also known as environmental scanning. PEST is useful tool to monitor and evaluate forces and factors affecting the company in long term” J Morrison (2002). Political/legal environmental: It is roles and regulation, which has been imposed by a stable government on the business. On the other hand, these changes may expected from the government in the future by business. Political factors of Sony can be changed at any time, which could affect business of the Sony at time of change. As well as instability in political situation of country will affect the business Reduction in recession and credit crunch could cause Sony to speed up its trade; meanwhile same situation could happen for the competitors of Sony, which may affect Sony negatively. Therefore, Sony needs to be very careful to its innovation and idea generation. Sony is globalized company so that changing in international law or trade restriction could affect the way in which Sony works, and Sony needs to follow the rules and regulations, that are imposed by the government. The terms legal always cannot come with term political because most of the time, by change in the politics of a country the legal terms and condition for business environment may remain the same. So that it could be named exceptionally,......

Words: 1886 - Pages: 8

Premium Essay

Pest Analysis

...1.0 QUESTION 1 “PEST analysis is used by businesses around the world to devise a strategic approach to their activities”. Discuss this statement describing in detail the components of the said analysis. 1.1 INTRODUCTION Apart from a company’s internal resources there are several other factors that have a profound impact the performance of a company. The internal resources usually refers to the employees of the firm, contractors, sub-contractors, suppliers and so on whereas the external environment refers to the market, clients, stakeholders, etc. 1.2 PEST ANALYSIS According to Kotler (1998), PEST analysis is a useful strategic tool for understanding market growth on decline, business position and direction for operations. The use of PEST analysis can be seen effective for business and strategic planning, marketing planning, business and product development and research. In order to survive, be profitable and maintain their competitive advantage, organizations have to recognise and take advantages of the external environments as well as identifying and consider threats when developing strategies. One of the most commonly used analytical tools for assessing external factors in a business situation is PEST analysis. Pest is an acronym for Political, Economic, Social and Technological external factors. PEST analysis is beneficial when conducting research before beginning a new project or to help conduct market research. Also, PEST analysis helps to determine...

Words: 2639 - Pages: 11

Premium Essay

Pest Analysis

...In order to examine external factors that can affect Bombardier’s business operations, our group conducted a PEST analysis. The acronym PEST stands for the external political, economic, social, and technological factors that affect a company’s business activities. Moreover, the PEST framework is a business tool that helps a company improve its decision-making and timing. The political risk that Bombardier faces is due to foreign government regulations, relations between the Canadian federal government and foreign governments, and the amount of government intervention that occurs in foreign markets. Specifically, strict regulations that are imposed by a foreign government within a market that Bombardier operates in can pose a negative effect on the firm’s revenues, such as pricing restrictions or increased taxes. International relations between the Canadian federal government and foreign governments within the markets that Bombardier operates in can pose a threat to the firm’s revenues. For example, if relations between Canada and China turn sour, Chinese state-owned airlines may opt to purchase aircrafts and trains from a non-Canadian manufacturer, as a result. Government intervention could perhaps have either a positive or negative effect on Bombardier’s global operations. For example, if the Chinese government were to increase spending on domestic air travel, this would lead to a greater demand for aircraft, which could potentially lead an increase in sales for......

Words: 838 - Pages: 4

Free Essay

Pest Analysis

...PEST ANALYSIS PEST analysis is used to assess that what environmental factors affecting different organization and which of them are more important and how they affect the organization. It is indicator of political, economical, social and technological influences on organization. Political & Legal Factors As far as the Lever Brothers Pakistan Limited concerns according to them that political instability have do affect but not particularly Lever Brothers Pakistan Limited same as it affects any other organization around and specially they are in consumer products business which never make them out of business. In case of legal factors, any trade policy or import duties is not affecting particularly Lever Brothers Pakistan Limited. In Pakistan right now following liberalization policy under SAP by IMF made which they have to waive off all restrictions and moreover due to huge investment by Lever Brothers Pakistan Limited no government can afford to create hurdles in the way of an organization like Lever Brothers Pakistan Limited. And they don’t have to go for only lobbying or what so ever as not action of Pakistan government has affected them adversely as such. Economical Factors Economical factors affect Lever Brothers Pakistan Limited in the same way as it affect any other organization like current economic situation in Pakistan and inflation has reduced consumer’s disposable income too, which in turn has reduced the purchasing power of consumer but affect is same......

Words: 611 - Pages: 3

Free Essay

Pest Analysis

...PEST ANALYSIS Political Factors: Government regulations: Netflix operates in the US in addition to many other countries, and it continues to expand nationally. This subjects the company to many different regulations by many different countries. Such regulations will have an impact on the company’s performance in that country. Here in the US, the FCC (federal communication commission) regulates communications in the US including video streaming like in the case of Netflix. Rules and regulations issued by the FCC can have a big impact of Netflix. Like the Network neutrality, which means that data on the internet should be treated the same and no discrimination in transmitting lawful traffic (Brenner, D. L., & Maxwell, W., 2011) whether the network neutrality rules are implemented or rejected will have a big impact on Netflix and the cost of the service. Also, regulations against video piracy have a big impact on Netflix, their pricing and their revenue. Other factors like the US post office problems and whether or not it will remain in business since a big part of Netflix business is through mailing DVD’s. Also taxation for online business Any rules or regulations for the internet use will impact Netflix since they depend on internet to deliver their service. Economic Factors: Netflix service, like any other service, is dependent on the state of the economy, and the spending power of its clients. Netflix service is not as essential as other services so any negative......

Words: 571 - Pages: 3

Premium Essay

Pest Analysis

...PEST Analysis A scan of the external macro-environment in which the firm operates can be expressed in terms of the following factors: * Political * Economic * Social * Technological The acronym PEST (or sometimes rearranged as "STEP") is used to describe a framework for the analysis of these macroenvironmental factors. A PEST analysis fits into an overall environmental scan as shown in the following diagram:     Environmental Scan |           / |   \ | External Analysis |     Internal Analysis     | /                       \ |   | Macroenvironment  | Microenvironment  |   |   | |  P.E.S.T.  |   |   |   | | Political Factors Political factors include government regulations and legal issues and define both formal and informal rules under which the firm must operate. Some examples include: * tax policy * employment laws * environmental regulations * trade restrictions and tariffs * political stability Economic Factors Economic factors affect the purchasing power of potential customers and the firm's cost of capital. The following are examples of factors in the macroeconomy: * economic growth * interest rates * exchange rates * inflation rate Social Factors Social factors include the demographic and cultural aspects of the external macroenvironment. These factors affect customer needs and the size of potential markets. Some social factors include: * health consciousness * population......

Words: 261 - Pages: 2

Free Essay

Pest Analysis

...Demonstrate an understanding of PEST analysis (macro-environmental assessment) by identifying the key factors of change in the environment for an organization of your choice. Critically analyze the impact of these changes on the market and the corresponding strategies to tackle these changes. I would like to propose milk powder in the mainland China as an example to illustrate the PEST analysis. Political - The political arena has a huge influence upon the regulation of businesses, and the spending power of consumers and other businesses. ➢ In the mainland China, the government had passed regulation limiting families to one child each in 1970s. People used to have four or five children in their families and now reduced to one or two. As a result, the birth rate had been declined significantly in the past decades. Less and less infants are born which means that the sales of the milk powder to the families for their infants would be declined as well. ➢ The Chinese government was running protectionism which meant that it imposed heavy taxes on the imported good. Most of the milk powder was transported to mainland. The selling price of milk powder was very high. Economical - Marketers need to consider the state of a trading economy in the short and long-terms in which affect the consumer purchasing power and spending pattern. ➢ The economy in China had been booming in the past decades. People’s incomes have been increased among the cities. They are......

Words: 694 - Pages: 3