Marketing and Marketing environment

PEST analysis

Introduction

An organization/company is successful if they control the external and internal environment. For controlling external and internal environment they have to adopt the strategy which can give them advantage. The organization /company should not only understand the existing factors but they should also forecast the changes in the environment adopt strategy through which they can respond accordingly in order to get advantage.

Factors which are not directly in the control of companies i.e. Political, economical, social and technological.

Political

First external factor is political environment which can influence the company/organizations in many ways there are political obligation and duties which can be followed other wise it will have negative influence on company if you follow the rules and obligation then it will be beneficial for company/organization. The obligations which the company have to follow is
•    Payment of taxes
•    Registered as trademark
•    Minimum wages (legislation)
•    Type of government communist, socialist, democratic, etc

Economical

Second external factor is economical environment which include the national and global economic factors like national and global interest rate, fiscal policy and economic recession in order to promote your business in uncertain economic condition you have to respond to the economical environment accordingly and you have to review that what impact of economic condition is taking place on your competitor and then respond accordingly

Social

Third external factor is social in which the company/ organization need to understand the culture and norms of the society because culture and norms totally change the attitude of people the company have to respond to the people changes in the society according to their culture, norms and life style for example is some countries people like spicy food if you offer them Chinese food they will not like it and your Chinese restaurant will not earn profit

Technological

Fourth external factor is technological as the technology is advancing day by day so company / organization also have to respond to the technological change and technology plays an important role in an organization in past when ms excel was not introduce companies have to maintain manual balance sheets and income statements and it was very time consuming and also not accurate but now ms excel make their work so simple and accurate that’s why companies have to respond to the technological changes if its software, hard ware, computers , laptops mobile phone like black burry which consist of many function as compare to simple mobile specially made for business class.

Written By:

Khush Dil Khan Kasi