Sarah Khalil

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. In addition, the higher the employment rate, the more tax the government will be receiving, which will mean more money to be used for NHS, schools, etc.

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Taxation  

Cooperation tax will be charged to my business. This is when the tax sum that my organisation will have to pay depends on the profit made. This will affect my business because if the tax I will be charged is high, the prices of my product will have to be high to compensate for the loss, and not lead to a major profit loss. This may dissatisfy the costumer especially the student, because generally they cannot afford high priced products as their income is not stabled because they do not work, but reply on their ...

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