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PEST Analysis.

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Introduction

PEST Analysis The following political, economical, social and technological environment considers the way a business operates. These are referred to as PEST factors this is short for political, economical, social and technological. A PEST analysis looks at the external business environment. Such external factors usually are beyond the firm's control and sometimes present themselves as threats. For this reason, some say that "pest" is an appropriate term for these factors. However, changes in the external environment also create new opportunities and the letters sometimes are rearranged to construct the more optimistic term of STEP analysis. The analysis examines the impact of these PEST factors (and their interplay with each other) ...read more.

Middle

Economic Marketers need to consider the state of a trading economy in the short and long-terms. This is especially true when planning for international marketing. Economic performance of the United Kingdom determines the level of income. The income together with wealth determines the standard of living individuals of the society. This then influences the way in which consumer spending goes and therefore market opportunities. The interest rates can affect Nike because if the interest rates were high then Nike would not want to borrow as much money for expansion. Also if consumers had loans they would again have less disposable income to but luxury items. ...read more.

Conclusion

On the other hand local residents with small businesses near to Nikes stores would benefit due to the money being brought in by tourists. Technological Technology is vital for competitive advantage, and is a major driver of globalisation. Technological gives rise to new products and also the market opportunities. It also enables businesses to have advanced technology to help them build their product in big numbers. Technology allows Nike to be more cheaply and to a better standard of quality. The use of technology enables Nike to produce new types of packaging and be able to advertise on the Internet, which would give them a competitive edge to their competitors. The downside would be that the cost of machinery and training staff would be expensive. ...read more.

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