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Questions and Answers
What does the acronym PESTLE stand for in the context of a management framework?
What does the acronym PESTLE stand for in the context of a management framework?
- Political, Economical, Strategic, Tactical, Law
- Political, Economic, Social, Technological, Legal, Environmental (correct)
- Profit, Earnings, Sales, Taxes
- Political, Ethical, Social, Technological, Earnings
What does the 'E' in the PEST acronym represent?
What does the 'E' in the PEST acronym represent?
- Ethical
- Environmental (correct)
- Economical
- Ergonomic
Which of the following is NOT a social factor considered in a PEST analysis?
Which of the following is NOT a social factor considered in a PEST analysis?
- Labor costs (correct)
- Cultural norms
- Population demographics
- Consumer preferences
How does a PEST analysis help businesses assess risks in their operating environment?
How does a PEST analysis help businesses assess risks in their operating environment?
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Study Notes
- PEST analysis is a management framework and diagnostic tool used to understand external factors impacting strategy and business decisions.
- Nestle is an acronym representing Political, Economic, Social, Technological, Legal, and Environmental factors to consider in the analysis.
- Political factors involve government policies, stability, tax implications, regulations, and global trade agreements.
- Economic factors include exchange rates, economic growth, inflation, interest rates, labor costs, and consumer spending.
- Social factors encompass lifestyle trends, cultural norms, consumer preferences, population demographics, and work-life balance.
- Technological factors focus on innovation, data security, disruptive technologies like smartphones and AI, automation, and robotics.
- Legal factors involve changes in employment law, tribunal decisions, legislation updates, and health and safety regulations.
- Environmental factors cover carbon emissions, sustainable resources, CSR, ethical sourcing impacting procurement and supply chain management.
- Relating PEST analysis to industry sectors helps assess risks specific to the business's operating environment.
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Description
Explore the PEST analysis framework used in business management to examine the external factors affecting strategic decisions. Learn about the key components - Political, Economic, Social, Technological, Legal, and Environmental factors - and how they influence industries and business environments.
