However, there will always be factors outside of your control affecting how your business operates. One method for discovering and quantifying those factors is the PEST analysis. PEST is an acronym for political, economic, social and technological.
Lets look at each of these macro-environmental factors in turn. This can include — government policy, political stability or instability in overseas markets, foreign trade policy, tax policy, labour law, environmental law, trade restrictions and so on.
It is clear from the list above that political factors often have an impact on organisations and how they do business. Organisations need to be able to respond to the current and anticipated future legislation, and adjust their marketing policy accordingly.
Economic Factors Economic factors have a significant impact on how an organisation does business and also how profitable they are. Factors include — economic growth, interest rates, exchange rates, inflation, disposable income of consumers and businesses and so on.
These factors can be further broken down into macro-economical and micro-economical factors. Governments use interest rate control, taxation policy and government expenditure as their main mechanisms they use for this. Micro-economic factors are all about the way people spend their incomes.
This has a large impact on B2C organisations in particular. Social Factors Also known as socio-cultural factors, are the areas that involve the shared belief and attitudes of the population.
These factors include — population growth, age distribution, health consciousness, career attitudes and so on.
These factors are of particular interest as they have a direct effect on how marketers understand customers and what drives them.
Technological Factors We all know how fast the technological landscape changes and how this impacts the way we market our products. Technological factors affect marketing and the management thereof in three distinct ways: New ways of producing goods and services New ways of distributing goods and services New ways of communicating with target markets Environmental Factors These factors have only really come to the forefront in the last fifteen years or so.
They have become important due to the increasing scarcity of raw materials, polution targets, doing business as an ethical and sustainable company, carbon footprint targets set by governments this is a good example were one factor could be classes as political and environmental at the same time.
These are just some of the issues marketers are facing within this factor. More and more consumers are demanding that the products they buy are sourced ethically, and if possible from a sustainable source.
Legal Factors Legal factors include - health and safety, equal opportunities, advertising standards, consumer rights and laws, product labelling and product safety. It is clear that companies need to know what is and what is not legal in order to trade successfully.
If an organisation trades globally this becomes a very tricky area to get right as each country has its own set of rules and regulations. We hope that you have found the above information useful.Company History Flick was founded in New South Wales, Australia in Flick South Africa was started in concentrating mainly in Pest Control and catering for the domestic, commercial and industrial markets.
In Flick became a Company wholly South African owned. Read More. An effective way to analyse key features of the external environment is to use PESTLE analysis. Importation or classical biological control involves the introduction of a pest's natural enemies to a new locale where they do not occur naturally.
Introduction to The PESTLE Analysis tool. PESTLE analysis is a useful tool for understanding the “big picture” of the environment in which you are operating, and the opportunities and threats that lie within it.
The use of PEST analysis can be seen effective for business and strategic planning, marketing planning, business and product developmentand research reports.
PEST also ensures that company’s performance is aligned positively with the powerful forces of change that are affecting business environment (Porter, ). This website provides easy access to all the pesticide-related information that is contained in various pesticide topical sites.
It also includes news and meeting information, an A-Z index, and more.