PEST Analysis Components

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Questions and Answers

Which factor in a PEST analysis is primarily concerned with the impact of legal and governmental regulations on business operations?

Political Factors (correct)
Economic Factors
Technological Factors
Socio-cultural Factors

What does the economic factors component of a PEST analysis focus on?

The technological advancements in an industry
Broader economic conditions impacting a business (correct)
The makeup of the population
The political climate affecting business operations

Which of the following best describes socio-cultural factors in a PEST analysis?

The financial market conditions influencing investments
The impact of government regulations on businesses
The technological advancements affecting productivity
The demographic makeup of the population and target markets (correct)

In PEST analysis, technological factors examine what aspect of business and industry?

<p>The broader technological trends affecting society (A)</p> Signup and view all the answers

Which factor analysis would study how a business could be impacted by changing legislation?

<p>Political Factors (C)</p> Signup and view all the answers

Flashcards

Political Factors

Government policies, regulations, and the overall political climate that can affect how a business operates and makes money.

Economic Factors

Broad economic trends, such as interest rates, inflation, and employment, that can influence a company's success.

Socio-cultural Factors

The values, beliefs, lifestyles, and demographics of a population that can determine customer preferences and market trends.

Technological Factors

How technology is used and developed within a business and across society, influencing innovation, efficiency, and customer behavior.

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PEST Analysis

A tool for analyzing the external environment of a business by considering political, economic, socio-cultural, and technological factors that can influence its success.

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Study Notes

PEST Analysis Components

Political Factors: Examine how government regulations and political climate influence a business's operations and profitability.
Economic Factors: Analyze broader economic trends that affect a business, including factors like inflation, recession, and interest rates.
Socio-cultural Factors: Consider the demographics and population makeup to assess market competitiveness and potential customer base.
Technological Factors: Evaluate the impact of technology on both the organization and the industry, noting both specific technological tools and broader societal technological changes.