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Pes tanalysis


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Pes tanalysis

  1. 1. PEST AnalysisPEST Analysis - By Prof. Purvish Shah BE ( Mech), PGDBM (Gold Medalist)
  2. 2. PEST Analysis: P – Political E – Economical S – Socio cultural T – Technological Used as decision making tool at the time of launch of new product/business/model/strategy
  3. 3. POLITICAL: -Government type and stability -Freedom of press, rule of law and levels of -bureaucracy and corruption -Regulation and de-regulation trends -Social and employment legislation -Tax policy, and trade and tariff controls -Environmental and consumer-protection legislation -Likely changes in the political environment
  4. 4. ECONOMIC: -Stage of business cycle -Current and project economic growth, inflation and interest rates -Unemployment and labor supply -Labor costs -Levels of disposable income and income distribution -Impact of globalization -Likely impact of technological or other change on the economy -Likely changes in the economic environment
  5. 5. SOCIO – CULTURAL: -Population growth rate and age profile -Population health, education and social mobility, and attitudes to these -Population employment patterns, job market freedom and attitudes to work -Press attitudes, public opinion, social attitudes and social taboos -Lifestyle choices and attitudes to these Socio-Cultural changes
  6. 6. TECHNOLOGICAL: -Impact of emerging technologies -Impact of Internet, reduction in communications costs and increased remote working -Research and Development activity -Impact of technology transfer
  7. 7. PEST ANALYSIS – AVIATION SECTOR ( INDIA) POLITICAL: -Liberalization of the Sector - Excise Duty and Sales Tax on Aviation Turbine Fuel - Modernization of Airports - Interface form Other Agencies - Entry Barriers for New Players ECONOMICAL: - Contribution to Economy - Rising Fuel Costs - Investments in the Sector
  8. 8. SOCIAL: - Developments in Airport Cities - Employment Opportunities - Ensuring a Level Playing Field - Safety Regulation TECHNOLOGICAL: - Growth of Electronic Ticketing - Satellite based Navigation Systems - Technical Cooperation with EU
  9. 9. PEST ANALYSIS – TATA buys JAGUAR POLITICAL: - Strong tax incentives for inbound investors - Strong political motivation for globalization - Strong reputation and trust - Adaptive legislative framework - Negative effect on the IT industry after 2009 as the government’s initiative of Tax holiday under STPI expires (Thinking Street 2007). ECONOMIC: - Strong technical skills - Strong export base - Strong infrastructure links - Competitive labour cost model - Adaptive investment authority to technological investments - Highly mobile work force
  10. 10. SOCIAL: - Strong science and educational culture - Strong management culture - Adaptive English speaking population TECHNOLOGICAL: - Strong R & D culture and facilities - Strong tie-ups with western technology companies - Adaptive to new technologies