The PEST Analysis Of PAT

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Register to read the introduction… In order for the managers to react to these forces, environmental scanning is required which involves monitoring of the environment for early warning signs of needed change (Hartzell, n.d.). Managers can use the knowledge gained from the process to decide what strategic steps are required to maintain competitive advantage (Hartzell, n.d.).
This can be done using PEST Analysis (Table 1).
Table1. PEST Analysis of PAT Political Factors | Economic Factors | * Pressure to invest in ‘green technologies’ to reduce carbon emissions. * Regulatory bodies and processes due to the merger * Legislation in different countries * Labour Unions | * Escalation of fuel prices * Rise in Airport Taxes * General increases in commodities relating to travel * Global Financial Crisis * Fall in Demand * Exchange rates in the different countries it operates * Increase competitors | Social Factors | Technological | * Consumer buying patterns * Change in the organization Image * Consumer expectations * Organization culture | * Upgrade in processes * New equipments * Global communication * Customer buying mechanism
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Despite the many benefits that could be derived from the merger and other changes, employees may have different perception of the change and react to it in various ways. Some employees might positively react while other may react negatively towards the change and may go thorough various stages before they begin to accept change, from denial to internalization (Carnall, 2007).
Although change is not an easy process, the change at PAT can be structured by following Kotter’s eight-step model for proper guidance in the planning and implementing process to ensure success of the merger. However Kotter’s model has its limitations of being top down and having no room for employee participation.

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