Political factors that can affect a business include areas such Ecological/ environmental issues, Current legislation home market, Future legislation, European/International legislation, Regulatory bodies and processes, Government policies, Government term and change, Trading policies, Funding, grants and initiatives, Home market lobbying/ pressure groups, International pressure groups, Wars and conflict
Economic factors that can affect a business include Home economic situation, Home economy trends, Overseas economies and trends, General taxation issues, Taxation specific to product/ Services, Seasonality/weather issues, Market and trade cycles, specific industry factors, Market routes and distribution trends, Customers/end-user drivers, Interest and exchange rates, International trade/Monetary issues,
Social factors often look at the lifestyle trends of people, demographics, Consumer attitudes and opinions, Media views, Law changes affecting social factors, Brand, Company, Technology image, Consumer buying patterns, Fashion and role models, Major events and influences, Buying access and trends, Ethnic/religious factors, Advertising and publicity, Ethical issues .
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Technological factors look at elements such as Competing technology development, Research funding, Associated/dependant technologies, Replacement technology/solutions, Maturity of technology, Manufacturing maturity and capacity, Information and communications, Consumer buying mechanisms/ technology, Technology legislations, Innovation potential, Technology access, licensing, patents, Intellectual property issues, Global communications.
Some advantages of a business using PEST analysis is that PEST is simple and does not cost much to do, this means that to create a PEST analysis for your business it doesn't cost much money you only have to spend your time doing it. PEST provides an understanding of the wider business environment this means that the business owners can see what it is that they will be affected by. PEST analysis may raise awareness of threat to a projects, this means that the business owner can work out how to overcome this threat. Read R oyal Dutch Shell PESTLE analysis
They can do things such as diversify into another product if they have a threat from a competitor taking their customers, they can do this so that they have a wider product range than their competitors so customers may stay with their business and they may get new customers, this will give them an edge over their competitors. PEST analysis can also help a business to be aware of future difficulties in association with their business this means that the business owners can take action to avoid or minimise the effect that the factor has on their business. e. g.
If new laws are being talked about by the government about environmental issues such as recycling a business can plan for this so that they can make sure that when the law comes into place that their business has all the essentials that they need to comply with the law. PEST analysis can also help a business can help a business to spot out opportunities and exploit them. However there are some disadvantages to a business of using PEST analysis. A disadvantage of using PEST analysis is that most PESTs are usually a simple list that doesn't have ever possible factor that could affect a business.
Another disadvantage of PEST is that society is constantly changing this means that it is increasingly difficult to anticipate developments that may affect a business in the future. Another disadvantage to a business of using PEST analysis is that PEST only covers the external environment, this means that there are many other factors such as the business itself, the businesses competitors, and the industry in which the business is operating these factors need to be taken into consideration when looking at the external environment singly.
In this assignment I will be looking at the PEST factors that will affect Ginsters. Some PEST factors that are associated with Ginsters business may make one of Ginsters existing aim and objective harder or easier to achieve. Ginsters may also have to change their aims and objectives as a result of changing PEST factors. In this assignment I will be looking at the way that PEST factors may or may not affect Ginsters business.
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