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PESt
Political, Economic, Sociocultural, Technological
PEST are external factors/departments in which a business cannot control, but can adapt to and react to them.
Political:
Economic:
Sociocultural:
Technological:
A PEST analysis is used to help the business make thought-out and good decisions instead of spontaneous ones. It can also allow the business to cope with unanticipated events/occurrences, and it is good for the business to be able to see where it is now and where it is going in terms of success in the future.
Note: I will be blogging on the external environment (meaning the four PEST factors) that will impact the company Adidas to gain a better understanding on how these factors play a significant role in a company and more specifically, how Adidas can adapt to the changes in the external environment. To follow these posts, check out the different categories under the PEST column.
PEST are external factors/departments in which a business cannot control, but can adapt to and react to them.
Political:
- Tax policies
- Employment laws
- Consumer protection
- Environmental regulations
- Political stability
- Funding, grants and incentives
Economic:
- Economic growth
- Employment levels
- Interest rates
- Exchange rates
- Inflation rate
- Competitive environment
Sociocultural:
- Lifestyle trends (e.g. health consciousness)
- Population growth & life expectancy
- Demographics (e.g. language, age distribution, religion, etc.)
- Consumer attitudes and opinions (including ethics & environmentalism)
- Environment/weather
Technological:
- Research & development activity
- Automation
- Technology incentives
- Rate of technological change
- Infrastructure
A PEST analysis is used to help the business make thought-out and good decisions instead of spontaneous ones. It can also allow the business to cope with unanticipated events/occurrences, and it is good for the business to be able to see where it is now and where it is going in terms of success in the future.
Note: I will be blogging on the external environment (meaning the four PEST factors) that will impact the company Adidas to gain a better understanding on how these factors play a significant role in a company and more specifically, how Adidas can adapt to the changes in the external environment. To follow these posts, check out the different categories under the PEST column.