Startegic Mangement Tools

The external factors 1. PEST compend PEST analysis stands for political, Economic, Social, and Technological analysis and describes a framework of macro-environmental factors used in the environmental examine component of strategical man come onment.. Objective: It is a part of the external analysis when conducting a strategic analysis or doing marketplace research, and gives an overview of the different macro-environmental factors that the company has to take into consideration. It is a useful strategic tool for understanding market growth or decline, bloodline position, potential and direction for operations. * | Factors: * Political factors are how and to what degree a government intervenes in the economy. Specifically, political factors intromit areas such as tax policy, labor law, environmental law, trade restrictions, tariffs, and political stability. Political factors may also include goods and services which the government wants to ply or be provided (merit goods) and those that the government does not want to be provided (demerit goods or merit beds). Furthermore, governments have great influence on the health, education, and infrastructure of a nation. * Economic factors include economic growth, enliven rates, exchange rates and the inflation rate.

These factors have major impacts on how businesses operate and make decisions. For example, interest rates tinct a firms cost of capital and therefore to what extent a business grows and expands. Exchange rates affect the costs of exportation goods and the supply and price of imported goods in an economy * Social factors include the cultural aspects and include health consciousness, universe growth rate, age distribution, career attitudes and emphasis on safety. Trends in social factors affect the demand for a companys products and how that company operates. For example, an aging population may imply a smaller and less-willing workforce (thus increase the cost of labor). Furthermore,... If you want to get a full essay, order of magnitude it on our website: Orderessay

Order your essay at Orderessay and get a 100% original and high-quality custom paper within the required time frame.