PEST Analysis

What does the P stand for in PEST?

• Politicians

• Parliamentary

• Purpose

• Political

A political factor could include

• Government grants for new businesses

• Changes in legislation that may affect a new business

• The RBA increasing interest rates

• The trend towards people wanting to be healthy

What does the S stand for in PEST?

• Sociocultural

• Selective

• Sales forecast

• Salary

Why is it important to consider technological factors in a PEST analysis?

• To try and confuse your staff

• To make sure you are keeping up to date with competitors

• To be aware what emerging technologies might help your business

• To make sure you buy the most expensive and latest technologiees

Economic factors are important to consider when starting a business because:

• Emerging technolgoies can help a new businesses efficiency.

• Population increase may affect your profit

• Knowledge is power

• Rising inflation rates might mean consumers have less $ to spend