Название: Starting a Business in 7 simple steps
Автор: Alex Ritchie
Издательство: HarperCollins
Жанр: Зарубежная деловая литература
isbn: 9780007556786
isbn:
help you to decide which opportunities to pursue, along with the strengths and weaknesses of your business or products.
enable you to identify any competitive advantage you have.
The situational analysis enables you to evaluate the position of your business, idea or products. There are various tools that can be used but the following are the four key tools.
PEST analysis
PEST is an acronym for political, economic, social and technological factors. A PEST analysis generally looks at external factors and can help you to understand changes or developments in the market and the position of your business in it by looking at the ‘bigger picture’. It’ll help you to identify external opportunities or threats and take proactive action. We look at each factor in turn here.
Political factors
Political factors relate to Government and include anything related to the law or legislation, for example, employment law and health and safety. Each country has its own set of legislation. Information on UK legislative acts can be found at: www.legislation.gov.uk. How might these affect your business?
Economic factors
Economic factors relate to things like interest rates or changes in inflation. How might the way the economy is performing affect your business?
Social factors
Social factors relate to consumer spending habits and trends. These are, of course, linked to economic factors as you’re likely to find that people’s spending habits go down in a recession and up in a boom. How might they affect your business?
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