PEST Analysts We are going to produce a PEST analysis to find out what external influences may be affecting the product (Mill) and to what extent to which customers decide to buy them. The purpose of the PEST analysis is to analyses the organization (Nestle Mill) operates and to identify how it may influence marketing decisions. A PEST analysis analyses the external environment in which an organization operates and identifies how it should influence marketing decisions.
Political Factors The actions of governments can have major effects on business and markets, including creating or reducing demand for particular products and services. Economic Factors Consumer spending may be controlled by a range of economic factors such as income levels, inflation, taxes, unemployment, and exchange rates and mortgage rates. Social Factors Social trends are important because they have a direct influence on the demand for particular types of product. Technological Factors Development in technology gives rise to new products and market opportunities, e. . The rapid growing use of computerized reservations systems. Economical * Exchange rates (what are they here/abroad, If you’re buying from another country and the rates differs, it changes the price you end up paying) Fall in value of sterling which makes exports cheaper and increases quantity of exports of mill. The geographical factor will increase with the prices of mill. It is because the transportation cost to East Malaysia is very high compare to West Malaysia. * Taxes (if they go up so will the costs for consumers) Higher mill prices reducing living standards.
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Higher taxes of mill prices causing lower wealth and spending. * Recession (people have less disposable income – would they buy Mill? ) Lower real wages increase disposable income does not encourages mill’s consumer spending. Increased consumer confidence, which encourages spending the necessity produced such as mill. PEST Analysis By vivifying * Intonation (prices go up tort the company and tort the consumer) Well known successful brands as competitors. Decreasing spending for the consumer of mill. Consumer will choose outside eating rather than consume the mill.