MindMap Gallery Strategic Organizational Tool – PEST Analysis
Generally, when analyzing the strategic macro-environment, one should analyze the political, economic, social, technology and other factors where the enterprise is located to grasp the macro-environment as a whole to determine the impact of changes in these factors. Impact on organizational strategic management processes. Simply call it PEST analysis or STEP analysis. PEST analysis is an ideal tool for management decision-makers and policy makers to help them analyze the forces driving industry and how these factors impact their business and industry as a whole.
Edited at 2022-09-14 09:27:54El cáncer de pulmón es un tumor maligno que se origina en la mucosa bronquial o las glándulas de los pulmones. Es uno de los tumores malignos con mayor morbilidad y mortalidad y mayor amenaza para la salud y la vida humana.
La diabetes es una enfermedad crónica con hiperglucemia como signo principal. Es causada principalmente por una disminución en la secreción de insulina causada por una disfunción de las células de los islotes pancreáticos, o porque el cuerpo es insensible a la acción de la insulina (es decir, resistencia a la insulina), o ambas cosas. la glucosa en la sangre es ineficaz para ser utilizada y almacenada.
El sistema digestivo es uno de los nueve sistemas principales del cuerpo humano y es el principal responsable de la ingesta, digestión, absorción y excreción de los alimentos. Consta de dos partes principales: el tracto digestivo y las glándulas digestivas.
El cáncer de pulmón es un tumor maligno que se origina en la mucosa bronquial o las glándulas de los pulmones. Es uno de los tumores malignos con mayor morbilidad y mortalidad y mayor amenaza para la salud y la vida humana.
La diabetes es una enfermedad crónica con hiperglucemia como signo principal. Es causada principalmente por una disminución en la secreción de insulina causada por una disfunción de las células de los islotes pancreáticos, o porque el cuerpo es insensible a la acción de la insulina (es decir, resistencia a la insulina), o ambas cosas. la glucosa en la sangre es ineficaz para ser utilizada y almacenada.
El sistema digestivo es uno de los nueve sistemas principales del cuerpo humano y es el principal responsable de la ingesta, digestión, absorción y excreción de los alimentos. Consta de dos partes principales: el tracto digestivo y las glándulas digestivas.
Strategic Organizational Tool – PEST Analysis
Concept meaning
Generally, when analyzing the strategic macro-environment, one should analyze the political, economic, social, technology and other factors where the enterprise is located to grasp the macro-environment as a whole to determine the impact of changes in these factors. Impact on organizational strategic management processes. Simply called PEST analysis or STEP analysis
When conducting a PEST analysis, first consider the effects of environmental factors that have been important to the organization in the past, and consider how these effects may change in importance to the organization and its competitors in the future. These factors are then evaluated by summarizing and listing questions about the key influencing factors at play in the environment to identify opportunities and threats facing the business
PEST analysis is an ideal tool for management decision makers and policy makers to help them analyze the forces driving industry and how these factors impact their business and industry as a whole
Main content and analysis
Political Factors
Political and legal factors refer to political forces and relevant laws, regulations and other factors that have actual and potential impacts on the organization's business activities. When the political system and system and the government's attitude towards the business operated by the organization change, and when the government promulgates laws and regulations that are binding on the business operations, the business strategy of the company must be adjusted accordingly.
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The political environment includes a country’s social system, the nature of the ruling party, government guidelines, policies, laws, etc.
Different countries have different social natures, and different social systems have different restrictions and requirements on organizational activities.
Even in the same country where the social system remains unchanged, in different periods, due to different ruling parties, the government's policy characteristics and attitudes towards organizational activities and their impact on organizational activities are constantly changing.
important political and legal variables
Nature of the ruling party
Political system
Economic system
Government regulation
Changes in tax laws
Various political action committees
Number of patents
Modifications to the special law
Environmental Protection Law
Industrial policy
Investment policy
Levels of defense spending
Level of government subsidies
Antitrust regulations
Relations with important powers
Regional relations
Number, severity and location of protests against the government
People’s participation in political behavior
Economic Factors
Economic factors refer to a country’s economic system, economic structure, industrial layout, resource status, economic development level, and future economic trends. Since enterprises are micro-individuals in a macro environment, the economic environment determines and affects the formulation of their own strategies. Economic globalization has also brought about economic interdependence between countries. Enterprises also have to make decisions on various strategies in the process of decision-making. Need to pay attention to, search, monitor, predict and evaluate the economic conditions of other countries other than one's own country
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The macroeconomic environment mainly refers to a country’s population and its growth trend, national income, gross national product and their changes, as well as the level and speed of national economic development that can be reflected by these indicators.
The microeconomic environment mainly refers to factors such as the income level, consumption preferences, savings, and employment level of consumers in the area where the enterprise is located or the area it serves. These factors directly determine the current and future market size of the company.
important economic variables
GDP and its growth rate
China’s transition to an industrial economy
Availability of loans
Level of disposable income
Residents’ consumption (savings) tendency
Interest rate
Inflation rate
Economies of scale
Government budget deficit
Consumption patterns
Unemployment trends
Labor productivity level
Exchange rate
Securities market conditions
Foreign economic conditions
Import and export factors
Income differences between different regions and consumer groups
Price fluctuations
Monetary and fiscal policy
Sociocultural Fators
Social and cultural factors refer to factors such as the national characteristics, cultural traditions, values, religious beliefs, education levels, customs and habits of members of the society in which the organization is located. The social and cultural environment includes the education and cultural level of residents of a country or region, religious beliefs, customs, aesthetic views, values, etc.
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The level of education will affect the level of needs of residents
Religious beliefs and customs may prohibit or boycott certain activities.
Values will affect residents' recognition of organizational goals, organizational activities, and the existence of the organization itself.
Aesthetic views will affect people's attitudes towards the content, methods and results of organizational activities.
important sociocultural variables
Female fertility rate
Number of special interest groups
Number of marriages and divorces
Population births and death rates
Population in-migration rate
Social Security Scheme
Population life expectancy
Per capita income
Lifestyle
Average disposable income
Trust in government
Attitudes towards government
Attitude towards work
Buying habits
Concerns about ethics
Propensity to save
Gender roles
Investment tendencies
State of Racial Equality
Birth control status
Average education status
Attitudes towards retirement
Attitude towards quality
Attitudes towards leisure
Attitude towards service
Attitude towards foreigners
Pollution control
Saving energy
Social activity projects
Social responsibility
Attitude towards career
Attitude towards authority
Demographic changes in cities, towns and rural areas
Religious status
Technological Factors
Technical elements include not only those inventions that have caused revolutionary changes, but also the emergence and development trends and application prospects of new technologies, new processes, and new materials related to enterprise production. Similarly, technologically advanced hospitals, universities and other non-profit organizations are more competitive than similar organizations that do not adopt advanced technologies.
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Key points of national investment and support for scientific and technological development
Technology development trends and total research and development expenses in this field
Technology transfer and technology commercialization speed
Patents and their protection
Typical PEST analysis table of contents
Analysis process
List key macro factors identified during environmental change analysis
Introduction to key factor identification methods
(1) Brainstorming method
(2) Cause and effect analysis method
(3) Group discussion method
(4) Critical incident method
Determine the weight according to the specific impact of each factor on the enterprise, and assign weight to each factor
Common factor weight determination methods
(1) Experience judgment method
(2) Reference method
(3) Three-dimensional determination method
(4) Value factor analysis method
Score each key factor according to the company's current strategy
Determine the business strategy model
(1) Manufacturing strategy
(2) Financial investment strategy
(3) Human resources strategy
(4) Marketing strategy
(5) Product R&D strategy
Things to note when rating
(1) Clarify the current strategy
(2) Group evaluation
(3) Process disclosure
(4) Collective decision-making
Multiply the weight of each key factor by its score to get a weighted score for each factor
Points to note when calculating scores
(1) Statistical process supervision
(2) Data correction
(3) Data analysis
Add the weighted scores of all factors to get the total weighted score of the company's macro environment
Analytical meaning
PEST analysis mainly analyzes the actual and potential impact of the macro environment on the enterprise, and is of profound significance for evaluating the impact of some factors on the enterprise's strategic goals and strategy formulation.
However, PEST analysis only provides an analysis framework, which is far from complete. A large number of indicators must be specific to the environment to be meaningful. Enterprises can continue to explore and enrich according to their own environment. Specific analysis indicators vary depending on the project situation and need to be selected by the enterprise according to needs.
PEST analysis itself does not provide selection and evaluation criteria for analysis indicators. The specific analysis results depend on the abilities and levels of managers and decision-makers, and are subject to greater uncertainty.
Application areas
Company strategic planning, market planning, product management and development, research report writing
Relationship to SWOT analysis
Similarities and Differences
1. They are all tools for environmental analysis.
2. PEST focuses more on the analysis of major industry backgrounds
3. SWOT is a purposeful analysis of the environment from the perspective of the enterprise.
4. The results of SWOT can be used to guide enterprises to seek advantages and avoid disadvantages.
combination
General steps for SWOT-PEST analysis
1. Organizational resources and capabilities analysis (s, w)
2. Organizational external environment analysis (O, P)
3. Construct SWOT-PEST matrix
4. Form a decision plan
S type strategy
Focusing on advantageous factors, the purpose is to maximize the impact of these factors through the application of decision-making
SP, SE, SS, ST
Type W strategy
Focus on the disadvantages. The purpose is to enable the organization to make full use of opportunity factors to overcome disadvantages through the use of decision-making
WP, WE, WS, WT
Type 0 strategy
Focusing on opportunity factors, the purpose is to enable the organization to exert its advantages and make full use of opportunity factors through the application of decision-making.
OP, OE, OS, OT
T-type strategy
Focus on threat factors. The purpose is to enable the organization to exert its advantages and resolve threats through the application of decision-making.
TP, TE, TS, TT
SWOT-PEST matrix analysis model
Case Analysis
PEST Analysis for the Medical Device Industry
PEST analysis is a basic tool for strategic external environment analysis. It represents the acronym of four types of English words that affect customer strategy formulation: political, economic, social, and technological.
political and legal environment
The sales of medical devices must have three complete certificates
my country has begun to implement a bidding system for drugs and medical devices
As China enters the WTO, Sino-US negotiations involve the medical device industry
Separation of medicine is the general trend
economic environment
my country is one of the top ten emerging markets for medical devices in the world
Judging from the sales ratio of medical devices and drugs in my country,
my country's sanitary materials trade shows a large surplus
The increase in personal disposable income has increased the purchasing power of medical device products
my country's medical device industry lacks internationally renowned product brands
Complete infrastructure is conducive to the company's cross-regional business strategy
The Pearl River Delta and the Yangtze River Delta are both places with developed import and export trade, which is helpful for companies’ transnational strategies.
social environment
Factors such as population increase, aging trend, and continuous improvement of medical standards directly constitute the driving force for the rapid development of the medical device industry.
my country has a population of 1.3 billion, of which rural population accounts for more than 70%
technical environment
In terms of technological progress, it is still difficult for my country’s medical device products to compare with foreign countries.
The medical device industry involves cutting-edge technologies in many disciplines such as electromechanics, physics, optics, and computers.
PEST analysis of travel agency products
The external environment of travel agencies is constantly changing, among which political (Politica1), economic (Economic), social and cultural (Social and Cultural), and technological (Technologica1) factors are the most critical
Related tools
STEEP analysis
STEEP analysis refers to the analysis and analysis of the five aspects of the environment (social), technological environment (technological), economic environment (economic), ecological environment (ecolog ical) and political-legal environment (political-legal) in which the enterprise is located. Scan and judge the general environment in which the enterprise is located, foresee and judge the opportunities and threats that market development brings to the enterprise from the development and changes of these environments, and provide a strong basis for the further strategic development of the enterprise.
STEEP analysis does not mean that each factor is independent of each other, and the boundaries between them are not fixed.
When applying STEEP analysis, there are no fixed boundaries between parts
PESTEL analysis
The PESTEL analysis model, also known as macro-environment analysis, is an effective tool for analyzing the macro environment. It can not only analyze the external environment, but also identify all forces that have an impact on the organization.
It is a method of investigating external influencing factors of an organization. Each letter represents a factor and can be divided into 6 major factors.
Political factors
Economic factors (Economic)
Social factors
Technical factors (Technological)
Environmental factors (Environmental)
Legal factors(Legal)
bibliography
1. Editor-in-Chief Liang Dong. Enterprise strategic management. Beijing: Machinery Industry Press, 2004.
2. Editor-in-Chief Liu Jifa. Industrial Policy, Beijing: Economic Management Press, 2004.
3. Wu Ning. China's tourism e-commerce in the information age: analysis and prospects, Social Sciences Press, 2004.
4. Xiang Ping. "Human World" will intensify the reform of the travel agency industry, Economic Daily, 2002.
5. Development trends of the U.S. online travel market, China Travel News. 2003.
6. Ma Mei. Strategic design for reconstruction of tourism industry value chain in the e-era, Shanghai: Shanghai Joint Publishing Company, 2004.
7. Wu Ning. 2004 China Tourism E-Commerce Observation: A Perspective on the Development of Travel Reservation Websites
Basic tools for strategic external environment analysis, used to analyze the impact of the customer's macro-environment on strategy