1.

5 External Environment
PEST Analysis

External Factors that Impact Business

Political and Legal Issues

Employment laws Consumer Protection Laws Business competition Laws Political changes (elections?) Policy changes Can you think of anything in this category that has currently affected business?

External Factors that Impact Business

Economic Influences

Economic Growth Rising or falling living standards Low or high levels of unemployment Value of imports/exports

Can you think of anything in this category that has currently affected business?

External Factors that Impact Business

Social and Cultural

Population demographics Role of women Improved Education Retirement Divorce/Marital rates Job security Immigration Can you think of anything in this category that has currently affected business?

External Factors that Impact Business

Impact of Technology

Costs (Equipment, labor training) Labor relations Data communication CAD/CAM (computer-aided design/computer-aided manufacturing) Internet/Intranet Application programs Can you think of anything in this category that has currently affected business?

PEST ANALYSIS

This form of business analysis examines the external environment and the global factors that may affect a business. It can provide a quick and visual representation of the external pressures facing a business, and their possible constraints on strategy.
It is usually divided into four external influences on a business P Political
E Economic

S Social
T Technological