PEST analysis

Résumé du document

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%.

Extraits

[...] The company can do an elaborated website with a lot of interactivity. 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. [...]

[...] That can be a difficulty to sell the product if the inflation rises too much. The inflation in UK is effectively raising, it has the most important percentage of increase in Europe. However, the CPI shows that the UK inflation rate is above average for the European Union as a whole. 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 Households with home access to the Internet An estimated 13.9 million households (57 per cent) in Great Britain could access the Internet from home between January and April 2006. This is an increase of 2.9 million households (26 per cent) since 2002, and 0.6 million per cent) over the last year. The internet connectivity is more and more integrated in society. That is why, the communication and advertising by internet is really important. Consequently, the company has to invest in the creation of e website. [...]

[...] Sociocultural Factors The social and cultural influences on business vary from country to 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 do not go against their religion so, it will be not a probem What are attitudes to foreign products and services? The europeen customer is in the habits to see foreign product in their country. [...]

[...] The problem, with these ways to sale, is that the retailer and the distributors can privilege other products because of we become a competitor for him. When we know that the sales on internet represents between 1 and of sales, do you want to have this risk? Otherwise, we can just put on our website in which store the customer can find the product. Indicative bibliography Business Development: A Guide to Small Business Strategy par David Butler (Broché - 28 août 2001) A handbook of Human Resource Management Practice, Armstrong. M. (2006). [...]