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PEST analysis

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PEST analysis Forces outside the organisation are rarely stable, as many change dramatically and rapidly. PEST analysis will help me recognise these external influences that will affect my organisation in future. Many of these influences could be harmful to my business, but make me aware of new opportunities. By constantly scanning the marketing environment it is possible to identify new opportunities that can be built upon by changing the market mix. The PEST analysis will help me be aware of the political, economical, social and technological factors that will have an affect on my business. Political Privatisation Privatisation of a company will affect the government. Private business organisations are not owned by the government, but by private owners. My business will be a private limited company, owned by me. This is because businesses similar to mine are not owned by government, but are privatised. Therefore all competitors will be private, as there will be no government owned businesses, which will result in a more competitive market. This issue is a political issue, as the government promotes private companies, because they are another institution of employment. So instead of everyone replying on government owned companies for employment, they are now a wider range of employment institutions through private owned companies. The more private owned companies there is the less the burden on the government, as there will be a high employment rate, therefore less people will be unemployed and claim benefits from the government. ...read more.


If the rate of inflation was high, people will be spending less, as their income will be less. This will also lead to the increase of the prices of goods. The inflation will affect employment as if the inflation is high, people will be spending less as their income is low, which means the businesses will not be making enough money therefore resulting in the increase of products' prices. If the business is not making a great deal of profit, then it cannot afford to pay its employees, and therefore there will be a low rate of employment. Low employment will mean that people will not be able to afford to buy a lot of goods, and so some businesses may become extinct. During a high rate of inflation, the Bank Of England increases its interest rates. This means people cannot afford to take loans to buy products, as products during a period of high inflation are high priced. The consequences of high inflation will not be affecting my business, as the current rate of inflation is low. This means the public is happily employed and gaining their salaries, which implies that they can buy my products. Since my product is aimed at students, technically it's their income that matters. Therefore if their parents are happily gaining their salaries, they can afford to give them their income or "pocket money" for their school lunches. ...read more.


This will not have direct affect on my business, as Lebanese cuisine is well known for its healthy meals. In addition, my targeted consumers are students between the age groups of 11-16. At this age, they are not fully aware of the affects of unhealthy diets. However, Lebanese food is very healthy, as most meals consist of salad. So students will not be experiencing any health problems in their future due to these new hot school meals. Population Growth Rate The population growth rate will not affect my business much, as the number of students within the school will stay the same, unless if there was a dramatic decrease of students, which is highly unlikely. However, there will not be an increase, as the maximum number of students per year should not exceed 32 students. Therefore, population growth will not have a dramatic affect on my business, as the numbers of consumers will not change. Technological New Technologies "Changes in technology is changing the way the business operates." The internet is having a profound impact on the marketing mix strategy of businesses. The students will be able to access the new menu through the school's intranet, and there will be a poll, were students can vote for their favourite meals. Computers are also another form of new technologies that will benefit the business, as all records will be saved on the computer, along side with a hard copy. Programmes such as Excel will help a great deal in finance calculations and records. ?? ?? ?? ?? Sarah Khalil ...read more.

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