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?