Essay about Pest

1116 Words Jul 21st, 2014 5 Pages
Example PEST Analysis and practical exercise

The PEST analysis takes a look at the external environment that the organisation is in. It quite simply asks us to consider the political, economic, social and technical influences on an organisation. This is sometimes called STEP and can even including environmental and legal considerations.

Below is an exemplar analysis of Coca-Cola

P Political change – government agendas for performance, targets and funding

Political Analysis for Coca-Cola
Non-alcoholic beverages fall within the food category under the FDA. The government plays a role within the operation of manufacturing these products in terms of regulations. There are potential fines set by the government on companies if
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economy was strong and nearly every part of it was growing and doing well. However, things changed. Most economists loosely define a recession as two consecutive quarters of contraction, or negative GDP growth. On Monday 26, the government officially declared that the U.S. has been in recession since March. (CBS Market Watch. " U.S. Officially in a recession." Rex Nutting. [nov 26,2001]. www.cbsmarketwatch.com)
However, because of aggressive action by the Federal Reserve and Congress it will be short and mild. The economy will return to sustained, positive growth in the first half of 2002.
Future Outlooks • The Federal Reserve is doing all that it can help the economy recover. They have cut the interest rate ten times this year. The rate now lies at a 40-year low of 2%. Lowering the interest rates will ultimately excite consumer demand in the economy. Companies will expand and increase use of debt as a result of the low borrowing rates. Coca-Cola can borrow money for investing in other products as the interest rates are low. It can use the borrowing on research of new products or technology. As researching for new products would cost less the Coca-Cola Company will sell its products for less and the people will spend as they would get cheap products from Coca-cola. • Before the attacks on September 11,

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