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PEST is a planning tool which is used by a business to evaluate and analyse the impact that political, economic, social, and technological factors might have on a business. PEST analysis of Ginsters Foods.

Extracts from this document...

Introduction

Pest Analysis for Ginsters A PEST analysis is an important part of a business's planning process. PEST is a planning tool which is used by a business to evaluate and analyse the impact that political, economic, social, and technological factors might have on a business. These are factors that affect a business. It is very important for a business to consider its environment before beginning a project. Businesses should continually consider the recent environmental aspects that affect their business PEST is an acronym for the following factors: * Political factors * Economic factors * Social factors * Technological factors Political factors that can affect a business include areas such Ecological/ environmental issues, Current legislation home market, Future legislation, European/International legislation, Regulatory bodies and processes, Government policies, Government term and change, Trading policies, Funding, grants and initiatives, Home market lobbying/ pressure groups, International pressure groups, Wars and conflict Economic factors that can affect a business include Home economic situation, Home economy trends, Overseas economies and trends, General taxation issues, Taxation specific to product/ Services, Seasonality/weather issues, Market and trade cycles, specific industry factors, Market routes and distribution trends, Customers/end-user drivers, Interest and exchange rates, International trade/Monetary issues, Social factors often look at the lifestyle trends of people, demographics, Consumer attitudes and opinions, Media views, Law changes affecting social factors, Brand, Company, Technology image, Consumer buying patterns, Fashion and role models, Major events and influences, Buying access and trends, Ethnic/religious factors, Advertising and publicity, Ethical issues . Technological factors look at elements such as Competing technology development, Research funding, Associated/dependant technologies, Replacement technology/solutions, Maturity of technology, Manufacturing maturity and capacity, Information and communications, Consumer buying mechanisms/ technology, Technology legislations, Innovation potential, Technology access, licensing, patents, Intellectual property issues, Global communications. Some advantages of a business using PEST analysis is that PEST is simple and does not cost much to do, this means that to create a PEST analysis for your business it doesn't cost much money you only have to spend your time doing it. ...read more.

Middle

This means that people will stop buying Ginsters products as they would rather spend their money on other businesses savoury products such as Ginsters competitors Puka pies, this will mean that they will be getting less income as people will not be buying Ginsters products. This could lead to Ginsters not having enough money to pay bills this means that they will have to shut down otherwise they may go into debt that they cannot pay back. This PEST factor could also be significant to Ginsters as it could directly affect their ability to achieve the aim / objective to maximise profits as Ginsters will get lower profits if they cannot transport their goods if the weather is to dangerous to drive in, this means that people will be unable to buy Ginsters good this will lead to Ginsters profits decreasing, however an aspect that will allow Ginsters to meet their aim to maximise sales is seasonal events such as Christmas ass people will want to but snacks such as sausage rolls to feed their families at Christmas. A PEST factor that I think could affect Ginsters is market routes and distribution trends. This is the affect that market routes and distribution trends have on a business. A market route and distribution trend that may affect Ginsters is that they do not have an online store for their business. This may affect Ginsters as it has become increasingly common for people in the UK to do online shopping this is because people can do online shopping in the comfort of their own home, and they can do it anytime of the day, this is becoming an increasingly common way for people to shop for food products, this is because for many people it is simpler and easier than going to a supermarket or corner shop to go shopping. For example parents with children may use online shopping as they can do it anytime and they do not have to take all their children with ...read more.

Conclusion

Also Ginsters may be innovative and create a product that a large percentage of people in the UK want to buy. This will mean that Ginsters are able to meet their aim of maximising profit as they are making more sales. This PEST factor could also be significant to Ginsters as it could directly affect their ability to achieve the aim / objective of Meeting stakeholders needs, this is because if Ginsters are putting a lot of work into ensuring that they are recognised for things such as winning low carbon awards, this could lead to stakeholders being unhappy because Ginsters are not putting enough effort into their normal business activity. This could be because they are spending lots of time in promoting themselves and their award for low carbon they have achieved and have therefore not done enough for their employees such as they have not spent the time they would usually spend speaking to employees about how the feel as they are to busy. This could affect Ginsters as people may not want to work for Ginsters as they may not feel valued by Ginsters as they are not being spoken to by their employers. If Ginsters are not maximising their profits any innovation potential that Ginsters come up with may be a waste of time as whilst they developed their ideas and produced new products they may have lost connection with some of their customers due to the fact that Ginsters were not doing enough to advertise and promote their products, this will mean that people are less likely to buy their products. However this PEST factor could affect Ginsters aim of meeting stakeholders needs in a positive way as they could improve their customer relations, this is because they have won recognised awards for an aspect that is good for the environment that their stakeholders live within. Winning awards allows Ginsters to look more efficient as a business this is likely to gain them more support and brand awareness from stakeholders; this could help benefit their sales. ...read more.

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