Macro-Environmental Analysis Flashcards
1
Q
What is PEST analysis?
A
A macro-assessment of:
P- Political
E- Economic
S- Social
T- Technological
2
Q
What is political element?
A
Nature of the political environment
Includes:
- Political stability
- Labor laws
- Environmental laws
- Tax policy
- Trade restrictions- tariffs, Quotas, Etc.
3
Q
What is the economic elements of Macro - Environmental analysis?
A
Concerned with:
- Economic growth rate and related demographics
- Interest rates
- Inflation rates
- Currency exchange rates
4
Q
What is the social element of Macro- Environmental analysis?
A
Concerned with culture, values, demographics
- Population growth rates
- Age distribution
- Educational attainment and career attitudes
- Emphasis on health and safety
5
Q
What is the technological element of Macro- Environmental analysis?
A
- Level of R&D
- State of technical infrastructure
- State of automation capability
- Level of tech “savvy”
- Rate of technological change
