Pest Analysis

Pest Analysis

P (Political) - Political and Legal

E (Economic) - Economic / Economic

S (Social) - Socio-cultural

T (Technological) - Technology

The analysis is performed in three stages:

1. Highlight important factors for individual segments of the environment.

In practice, this means print such factors that segment (Political, Legal, Economic, Socjokulturowy, Technology), which significantly affect or may affect the business of the enterprise. For example, the company conducting the training, an important element of political and legal environment may be the fact that the European Union subsidizes some training.

2. Determining the impact of each factor on the functioning of the organization

At this stage distinguish which factors strongly affect the macro to the organization, and which will influence the future. We share them because of the strength (validity) and the time of impact - whether we have to do with them, or we will have in the future.

3. Determine the relationship between the organization and macro

That is a summary of a factor with this, how it affects or may affect the activities of the organization. A quoted company, it will be the fact that competition can benefit from training grants, prices for some hard training may fall, or already are low, and the company if it wants to use the funding must submit an application, and possibly change some of the training programs.

Example: PEST analysis - case study

The company "Colorado beetle" is a network of food discount stores operating on Polish territory. The offer has three flagship products: homogenized cream cheese (very wiadereczku), biscuits, "Captain" and herring in cream, which are loved by customers and are responsible for 75% of company revenue.

Discount "Colorado beetle" are located in all cities of over 50,000 Polish inhabitants and 60% of cities over 20,000 inhabitants. The brand is well known and positioned as a discount store with good but cheap products.

Head of the "Colorado" - Jorge Unakikuta-Banditez said that he wants to introduce a new product - carrot jam, to offer "Colorado." But before this is possible, it is necessary to carry out such PEST analysis, which will help in the risk assessment project.

Analysts known company Bialystok Consulting Group (BCG) immediately went to work.

Setting the politico-legal

The rules governing the parameters of the jam in the European Union, the carrot was considered a fruit. The EU directive (Council Directive 79/693/EEC, 24 July 1979) defines the minimum content of fruit in jam, but in order to cover different types of jams produced in EU countries, expanded the definition of fruit, including not only said to him carrots, but also tomatoes, melons , watermelon, rhubarb, sweet potatoes, cucumbers and pumpkins.

It turned out that the jam may be permitted, provided that will contain the contents specified in the directive