The PEST model is a very useful way of identifying an organisations external constraint.  These four groups have an influence on the way the business can be set up and run.  Also the environmental and legal issues can be added to the PEST model, this is commonly done by anyone using the PEST model because it gives even more information into the company’s external influences when this is done the PEST model becomes the PESTEL model.

I have decided to do a PEST analysis for Nestle, I am doing this because I believe that it will give me a better insight to the way that the business is running as it is, after doing my analysis I hope to have identified all of the external constraints I must take into account when developing a successful marketing plan.  I have also decided to analyse the environmental and legal parts to the advanced PEST model

This is my PEST analysis of Nestle:

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 Changes in tax- If the tax rate was to change it would have a direct affect on Nestle, because every change happens that occurs in tax will also cause price of Nestle to do the same.  So if the tax rate increased this would mean that the price of confectionery goods would also increase, this could cause Nestle to lose customers as a result of over pricing.

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Trade unions- Trade unions are put in place to look out for the best interests of the worker.  They discuss what is wrong with the work place or what needs changing and they then come forward and speak for the working bodies.  If Nestle had to lower wages for some reason, this would mean that the trade union would file a complaint because of the wage reduction and if the wages were not raised to an acceptable amount there is a danger of a staff strike.  This would affect the production lines of Nestle and any other section of the ...

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