Macro-Environmental Analysis

Question 1

What is PEST analysis?

Answer 1

A macro-assessment of:

P- Political
E- Economic
S- Social
T- Technological

Question 2

What is political element?

Answer 2

Nature of the political environment

Includes:

• Political stability
• Labor laws
• Environmental laws
• Tax policy
• Trade restrictions- tariffs, Quotas, Etc.

Question 3

What is the economic elements of Macro - Environmental analysis?

Answer 3

Concerned with:

• Economic growth rate and related demographics
• Interest rates
• Inflation rates
• Currency exchange rates

Question 4

What is the social element of Macro- Environmental analysis?

Answer 4

Concerned with culture, values, demographics

• Population growth rates
• Age distribution
• Educational attainment and career attitudes
• Emphasis on health and safety

Question 5

What is the technological element of Macro- Environmental analysis?

Answer 5

• Level of R&D
• State of technical infrastructure
• State of automation capability
• Level of tech “savvy”
• Rate of technological change