D271 - video - 4.2 - 1

• 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.

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.