BDI3C – 3.4 Worksheet – PEST Analysis & SWOT Analysis Name: ________________________ POLITICAL The politicl crenc hcs c huge infuenie upon the regulcton of businesses, cnd the spending power of ionsumers cnd other businesses. You must ionsider issues suih cs: 1. 2. 3. 4. 5. 6. 7. 8. 9. Environmental regulaton and protecton Taxaton (corporate and consumero Internatonal trade regulatons Competton regulaton Will government policy infuence laws that regulate or tax your business? Is the government involved in trading agreements such as EU, NAFTA, ASEAN, or others? What is the government's positon on marketng ethics? What is the government's policy on the economy? Does the government have a view on culture and religion? SOCIOCULTURAL The soiicl cnd iulturcl infuenies on business vcry from iountry to iountry. It is very importcnt thct suih fcitors cre ionsidered. Fcitors inilude: 1. Income distributon (change in distributon of disposable income; 2. Demographics (age structure of the populaton; gender; family size and compositon; changing nature of occupatonso 3. How much tme do consumers have for leisure? 4. Lifestyle changes (e.g. Home working, single householdso 5. Fashions and fads 6. What are the roles of men and women within society? 7. General educaton levels 8. How long are the populaton living? Are the older generatons wealthy? 9. Does the populaton have strong/weak opinions on green issues? ECONOMIC You need to ionsider the stcte of c trcding eionomy in the short cnd longterms. You need to look ct: 1. 2. 3. 4. The Level of interest rates (efect on larger purchaseso Stage of the business cycle (efect on short-term business performanceo The level of infaton (efect on costs and selling priceso Employment level per capita (efect on income levels and therefore spendingo 5. Long-term prospects for the economy 6. Economic "mood" (consumer confdenceo 7. Exchange rates (efects on demand by overseas customers; efect on cost of imported componentso 8. Government spending (overall level; specifc spending prioriteso 9. Taxaton (impact on disposable income, corporaton tax rateso 10. Economic growth (overall; by industry sectoro TECHNOLOGICAL Teihnology is vitcl for iompettve cdvcntcge, cnd is c mcjor driver of globclizcton. Consider the following points: 1. Does technology allow for products and services to be made more cheaply and to a beter standard of quality? 2. Do the technologies ofer consumers and businesses more innovatve products and services such as Internet banking, new generaton mobile telephones, etc? 3. How is distributon changed by new technologies - e.g. books via the Internet, fight tckets, auctons, etc? 4. Does technology ofer companies a new way to communicate with consumers - e.g. Internet banners, Customer Relatonship anagement (CR o, etc? STRENGTHS Whct cre your iurrent strengths? You cre looking for positves internclly. o o o o o o o o o o o o Advantages of product? Capabilites? Compettve advantages? USP's (unique selling pointso? Resources, Assets, People? Experience, knowledge, data? Financial reserves, likely returns? arketng ‐ reach, distributon, awareness? Innovatve aspects? Locaton and geographical? Price, value, quality? Accreditatons, qualifcatons, certfcatons? WEAKNESSES Whct cre your iurrent wecknesses? You cre looking for negctves internclly. o o o o o o o o o o OPPORTUNITIES Whct cre your possible opportunites? You cre looking for positves externclly. o o o o o o o o o o o o arket developments? Compettors' vulnerabilites? Industry or lifestyle trends? Technology development and innovaton? Global infuences? New markets, vertcal, horizontal? Niche target markets? Geographical, export, import? Business and product development? Partnerships, agencies, distributon? Volumes, producton, economies? Seasonal, weather, fashion infuences? Disadvantages of product/services? Gaps in capabilites? Lack of compettve strength? Financials? Timescales, deadlines and pressures? Cashfow, start‐up cash‐drain? orale, commitment, leadership? Accreditatons, etc? Processes and systems, etc? anagement cover, succession THREATS Whct cre your possible thrects? You cre looking for negctves externclly. o o o o o o o o o o o Politcal efects? Legislatve efects? Environmental efects? Compettor intentons? arket demand? New technologies, services, ideas? Vital contracts and partners? Loss of key staf? Sustainable fnancial backing? Economy ‐ home, abroad? Seasonality, weather efects?