To analyze the Macro-environment, basically, you have to make a PEST analysis. We saw a little bit of that in the situational analysis but now we’re going to go deep into the subject.
PEST analysis means Political, Economic, Social and Technological analysis. So with this study you will be able to understand your external atmosphere.
Political Analysis – all of the laws or regulations that may affect your company in some way. For example, a tax that is only applied in your market like smoking tax.
Economic Analysis – weather the economic is in depression or no can affect your company, because it affects customers and suppliers.
Social Analysis – a company must be aware of society beliefs in the market. For example, if the market is religious, maybe you should promote it in a way religious people will want to buy.
Technological Analysis – any new technological discoveries that influence the market, will influence your company too.
Recently, PEST is also referred to as PESTE with the extra E referring to Ecological. This has changed mainly because of the importance of environment issues nowadays.
Ecological Analysis – the market may be affected by pollution, sustainability and recycling, and you have to be aware of that.[button_with_link url=”/100-point-business-plan/business-plan-outline-marketing/marketing-controls/” target=”_self” class=”button-left”]<< Previous[/button_with_link] [button_with_link url=”/100-point-business-plan/business-plan-outline-marketing/market-analysis/” target=”_self” class=”button-right”]Next >>[/button_with_link]
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