The PEST analysis is considered as one of the major factors of the external macro-environment and when organizations are evaluating the external environment then PEST analysis is considered as a necessity (Value based management , 2009). The external factors are usually considered beyond the firms control and these external factors in certain conditions are considered as a threat to an organization (Hill & Jones, 2007). When carrying out a PEST analysis of an organization factors including political, economical, social and technological are identified and elaborated (David, 2008). The factors that are incorporated in a PEST analysis are discussed below:
Political Analysis: There are certain factors like political instability, taxation, industrial safety regulations, pricing regulation, etc included in the political analysis of an organization (Dess, Lumpkin, & Eisner, 2007). In the scenario of an event management company all these factors are very important and the organization must understand that what are the political trends in the country and since there are 30 clients of the company therefore, these 30 clients belong to which political background. These political analyses in the scenario of an event management company is also very important because the event management company also deal in public relations that is the reason why they have to comply with all the governmental rules and regulations.
Economic Analysis: The economic analysis of an organization incorporate aspects like the condition of the financial markets in the country, unemployment rate, inflation rate, interest rates, etc. In the scenario of event management company aspects like currency rates and the aspect of inflation are very important. Besides that certain aspects like skills level of the workforce and labor costs are also very important because these aspects directly affect the event management company and the operations of the event management company are based on these factors.
Social analysis: The social analysis incorporates aspects like education, demographics, attitudes, etc. In the scenario of an event management company these characteristics are very important because the preferences of the customers can be identified by these factors.
Technological analysis: The technological analysis of an organization incorporates elements like impact of technology on the value chain of an organization, new technological impact on organization, rate of technological diffusions, etc. In the scenario of an Event Management Company in order to please certain customer’s new and modernized technologies should be used by the organization (David, 2008). In the similar manner more and more customers would be attracted by the technological approach of an organization.
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