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PEST Analysis - Coggle Diagram
PEST Analysis
Political
Include tax policy, labour law, trade restrictions, environmental law, tarriffs, patents, trademarks, etc.
Determine the customers' demands, business environment, profits, employment rights
Example: The increase of poliical freedom for businesses in Vietnam create an opportunity for Rolls-Royce to enter the market as the population is more open to cultural differences and technological advancements.
Sociocultural
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Example: In India, companies give bonus cash for couple anniversaries since marriage is an important aspect of Indian culture.
Economical
Include country's economic growth forecast, market and trade cycles, currency fluctuations, industry changes, customers' preferences, etc.
Affect the pattern in demand and supply of the market, profitiability and operational strategies, etc.
Example:The drastic growth of China's economy with a massive population opens great opportunities for global companies, because there are huge consumer base who are able to afford the products such as cars.
Technological
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Example: In Bangladesh, it is more cost-effective for clothing companies to purchase advanced technology rather than recruiting hundred workers to do the tasks