Handouts

PEST model:

-> Complementary analysis of the 5 forces;

POLITICAL/LEGAL:
– Regulation: automotive industry, UE commission should not allow to produce cars with traditional engine, this is a regulation;
– Monopolies legislation;
– Environmental protection laws;
– Taxation policy;
– Foreign trade regulations;
– Employment law;
Government stability;
ECONOMIC:
– Business cycles;
– GNP trends;
– Interest rates;
– Money supply and inflation;
– Unemployment & av.income
– Energy availability and cost;
SOCIO-CULTURAL:
– Population demographics;
– Income distribution;+Social mobility;
– Lifestyle changes;
– Attitude to work and leisure;
– Levels of education.
TECHNOLOGICAL:
– Govnn. Spending on research;
– Gov. /industry cfocus on technological effort;
– New findings/developments;
– Speed of technology transfer;
– Rates of obsolescence.

Steps:

  1. Identify each possible factor;
  2. Giece each factor a probability of occurence in % and rating for their impact in the comping 3-5 years where:
    • -5: extremely negative impact;
    • +5: extremely positive impact;
  3. Map factors as O/T to include the OT portion of the SWOT analysis;

Example representation:

⚠️Same trend can be an opportunity for someone and a threat for someone else.

📌Don’t spend to much space in PW for this kind of analysis;

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