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Political
The first element of a PEST analysis is a study of political factors. Political factors influence organisations in many ways. Political factors can create advantages and opportunities for organisations. Conversely they can place obligations and duties on organisations. Political factors include the following types of instrument:
- Legislation such as the minimum wage or anti-discrimination laws.
- Voluntary codes and practices
- Market regulations
- Trade agreements, tariffs or restrictions
- Tax levies and tax breaks
- Type of government regime e.g. communist, democratic, Dictatorship
Non conformance with legislative obligations can lead to sanctions such as fines, adverse publicity and imprisonment. Ineffective voluntary codes and practices will often lead to governments introducing legislation to regulate the activities covered by the codes and practices.
Economical
The second element of a PEST analysis involves a study of economic factors. All businesses are affected by national and global economic factors. National (and global) interest rates and fiscal policy is set around economic conditions. The climate of the economy dictates how consumers, suppliers and other organisational stakeholders such as suppliers and creditors behave within society. An economy undergoing recession will have high unemployment, low spending power and low stakeholder confidence. Conversely a "booming" or growing economy will have low unemployment, high spending power and high stakeholder confidence.
A successful organisation will respond to economic conditions and stakeholder behaviour. Furthermore organisations will need to review the impact economic conditions are having on their competitors and respond accordingly. In the current business world, organisations are affected by economies throughout the world and not just the countries in which they are based or operate from. For example: a global credit crunch originating in the USA contributed towards the credit crunch in the UK in 2007/08.Cheaper labour in developing countries affects the competitiveness of products from developed countries. An increase in interest rates in the USA will affect the share price of UK stocks or adverse weather conditions in India may affect the price of tea bought in an English café.
A truly global player has to be aware of economic conditions across all borders and needs to ensure that it employs strategies that protect and promote its business through economic conditions throughout the world.
What else can I help you with?
How did the stock market affect the us ecconomy?
The stock market does not lead or affect the economic but does tell you how the economic is doing. You might want to call it an index which tell you in advance if the companies in such economic are making improves or declines.
What is the difference between economic constraints and political constraints?
Economic constraints refer to limitations imposed by financial resources, market conditions, or economic policies that affect decision-making and behavior in economic activities. In contrast, political constraints involve restrictions arising from governmental regulations, political stability, and the influence of political actors on policy-making. While economic constraints focus on material and financial factors, political constraints emphasize the governance and regulatory environment that shapes economic outcomes. Together, these constraints can significantly impact how individuals, businesses, and governments operate.
What is market authoritarianism?
Market authoritarianism is a political and economic system where a government maintains strict control over political freedoms while simultaneously promoting free-market policies and economic growth. This approach often involves limited political pluralism, suppression of dissent, and the concentration of power in the hands of a ruling elite. While it can lead to economic development and stability, it may also result in significant human rights abuses and a lack of democratic governance. Countries like China are often cited as examples of market authoritarianism, balancing economic liberalization with tight political control.
Advatages of caricom single market and economy?
creates more economic and political opportubities for member countries
Do you think a market economy by definition is the most ethical economic and political structure?
NO, because most of the markets is privately own and it has no ethical ecomonic or political structures
How did the stock market affect the us ecconomy?
The stock market does not lead or affect the economic but does tell you how the economic is doing. You might want to call it an index which tell you in advance if the companies in such economic are making improves or declines.
What is the difference between economic constraints and political constraints?
Economic constraints refer to limitations imposed by financial resources, market conditions, or economic policies that affect decision-making and behavior in economic activities. In contrast, political constraints involve restrictions arising from governmental regulations, political stability, and the influence of political actors on policy-making. While economic constraints focus on material and financial factors, political constraints emphasize the governance and regulatory environment that shapes economic outcomes. Together, these constraints can significantly impact how individuals, businesses, and governments operate.
What is market authoritarianism?
Market authoritarianism is a political and economic system where a government maintains strict control over political freedoms while simultaneously promoting free-market policies and economic growth. This approach often involves limited political pluralism, suppression of dissent, and the concentration of power in the hands of a ruling elite. While it can lead to economic development and stability, it may also result in significant human rights abuses and a lack of democratic governance. Countries like China are often cited as examples of market authoritarianism, balancing economic liberalization with tight political control.
Advatages of caricom single market and economy?
creates more economic and political opportubities for member countries
In the current socio culture political legal economic and international crisis in Pakistan give your opinion how managers can market their product and services?
The current socio culture political legal economic and international crisis in Pakistan
Do you think a market economy by definition is the most ethical economic and political structure?
NO, because most of the markets is privately own and it has no ethical ecomonic or political structures
What are the definition of economic influence?
Economic influence is the effect that an event, policy, or market trend will have on economic factors. These economic factors include interest rates, consumer confidence, and the stock market. For example, a bank that declares bankruptcy will affect consumer confidence and stock prices related to that bank.
What is market reseach?
Market Research has several categories. - Consumers (who is the target market?) - Competition (including Porter's 5 Forces of Competition). Other factors to evaluate in market research Political, Environmental, Sociological, Technological, and Economic.
Is a vision statement flexible?
I hope so because of environmental (political, economic, financial and market segment) dynamics and changes.
What is an economic market?
an economic market is when people distrubte
How did the free-market economic system affect life in new England?
Food like meat fish and more
How did the free -market economic system affect life in new England?
Food like meat fish and more
