The document discusses PEST analysis, which is a framework used to analyze the political, economic, social, and technological factors that may impact a business or organization. It examines how these factors can affect decision making for launching new products, businesses, models, or strategies. The document then provides examples of how PEST analysis was used to examine the aviation sector in India and Tata's acquisition of Jaguar. It lists some of the key political, economic, social, and technological considerations in each case.

1. PEST AnalysisPEST Analysis
- By Prof. Purvish Shah
BE ( Mech), PGDBM (Gold Medalist)

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. 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. 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. 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. 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. 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. 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. 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. 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