PEST

what does pest analysis do

examines the general external environment to identify opportunities and threats that affect a business

what does Political stand for

how government rules affect a business

political causes

laws, regulations, international trade laws, trade agreements

political and its business effects

can change costs, competition, barriers to entry, expansion opportunities

what does Economic stand for

the economic conditions that affect spending and business finances

economic causes

GDP, inflation, employment, exchange rates, interest rates

economic and its business effects

can change customer demand, input costs, borrowing costs, profitability

what social means

who people are, what they value, and how they behave

social causes

demographics, values, attitudees, customs, habits

social and its effects on business

can change customer needs, buying habits, employee expectations, corporate social responsibility (CSR)

what technology means

tools and developments that change how buisnesses operate

technological causes

information technology, internet, materials, equipment

technological business effects

can change efficiency, product quality, innovation, barriers to entry, and research and development