PEST analysis

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PEST analysis

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Abstract

PEST stands for political, economic, social and technological features of a business environment which might influence or even threaten the company. This allows detecting all nuisance or hindrance factors to business development. The political arena has a huge influence upon the regulation of businesses and the spending power of consumers and other businesses. Since the establishment of Europe, the political environment in this area has been very stable and will not really pose a problem for our project. But if there are no major threats, with the different wars like in Iraq and terrorism, the country can be unstabilized by the external factors. Will government policy influence laws that regulate or tax your business? The profits of society are taxable but there are different rates. The capitals gains achieve by society are submitted to a rate of 30% or 19%.

Introduction
Political factors
1. Political environment
2. Effect of government policies on business
3. Government's position on marketing ethics
4. Government's policy on the economy
5. Government's view on culture and religion
Economic factors
1. Interest rates
2. Exchange rates
3. Unemployment in UK
4. Rate of inflation
5. Long-term prospects for the economy Gross Domestic Product (GDP) per capita
6. Small business grants
Socio-cultural factors
1. The dominant religion
2. Attitudes to foreign products and services
3. The roles of men and women within society
Technological Factors
1. Internet possibilities
2. Distribution by internet
Bibliography

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[...] In November 2006 the interest. It is not really an advantage to invest in England because if a person wants to create a company, generally he needs money and with this rate, the interest will be relatively important. It is an extra cost for a company. The interest rate in UK The interest rate in England is relatively stable, but the tendency is to rise. In November 2006, the interest was about 5%. It is not really an advantage to invest when the interest is high Exchange rates Pound Sterling - United States Dollar latest (Nov 16) 1.4758 lowest (Jul 1.43907 highest (Nov 1.49634 This rate is not really an advantage to export in the country in euros but it is better than in the USD country. [...]

[...] It is very important that such factors are considered What is the dominant religion? Christianity being the dominant feature in shaping European culture for at least the last 1700 years. Our product does not go against their religion so, it will be not a problem What are attitudes to foreign products and services? The European customers are in the habit of seeing foreign products in their country. There is no reluctance in buying products from abroad. Consequently, it is not a problem for the company to export its product to Europe Does language impact upon the diffusion of products onto markets? [...]

[...] The most spectacular demographic changes is related to the highest age category (80 years and above). On this graph, one can see that the target customers for the product are a large market share Does the population have a strong/weak opinion on green issues? The environment is a subject which is becoming very important. The customer is sensitive about the consumption of electricity or water, the use a product can be determined by amount of resources it uses and the customer will make a choice based on these factors. [...]

[...] The provisional inflation rate for the EU 25 in September was 1.9 per cent, compared with the UK rate of 2.4 per cent for the corresponding period. That means, the raising of CPI can affect production and distribution in the UK Long-term prospects for the economy Gross Domestic Product (GDP) per capita, and so on Source: OECD in 2003 GDP per capita is the most compact indicator for wealth worldwide. UK has a really good GDP; it has the fourth place in Europe. [...]

[...] And E-commerce is likely to have a huge impact on the way we do business. It has the potential to lead to dramatic growth in trade, increase markets, improve efficiency and effectiveness and transform business processes. In recognition of its significance in the future performance of the economy, the UK Government set itself the target of becoming 'the best environment in the world to do e-commerce.' But Internet doesn't reach all the population, the use depends of the age but not of the sex. [...]

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