Pest Analysis Essay

PEST

The environment we live now are not very stable. PEST analysis is one of the most popular management method in differentiate the external factors that affect the organization. PEST is stands for Political, Environment, Social and also Technology. These factors are the most important tool to analysis the organization. Since our company offering clothes for all ages and fulfils the customer’s needs there are some external issues must think through in order to stay modest world of business.

• Political (Legal) Aspects

A company can’t achieve success, good name and trust if they never think through about political and legal sector as a part of their business plan. These clearly state that a company should follow the given rules and

Therefore, one could conclude that the international expansion of Clothing Company is expected to be feasible and grow faster than average. Regardless of current trends and unpredicted circumstances, the company is now ready for the implementation of plans. In relation to the role of marketing research in decision making processes of the company, it could be considered that marketing research is undeniable one of the most important tool in starting a business. Thus, its role is indispensable in the process of business expansion especially to the case of Clothing Company who is now ready for international take-off of its operations and products.

Porter’s five analyses

Porter’s five analyses are also known as industry analysis. It is an important tool for the business strategist. It is based on observation that profit margins among industries, which can be explained by the structure of the industry. There are five types of analyses which were introduced by porter. The main purpose of this strategy is to determine the magnet of an industry. However, the starting point to formulate the strategy is to understand the strategy and landscape in which a company

Bargaining Power Of suppliers

The bargaining power of suppliers is including you and the one who are involve in this business. Suppliers can suppress the profitability of the industries to which they sell by raising prices or reducing the quality of the components they provide.

There are a lot of factors that have an impact on the ability of suppliers to exert pressure on buyers. Firstly, suppliers concentration which mean they are only a few suppliers that supply a critical product to a large number of buyers. The supplier also had advantages.

Next is, switching cost. Switching cost is fixed costs that buyers encounter when changing from one supplier to another. If switching costs are high a buyer will be less likely to switch suppliers. Besides, attractiveness of substitute is also factors that have an impact. Supplier power is enhanced if there are no attractive substitutes for the product or services that suppliers offer.

Last but not least, threat of forward integration. The power of a supplier is enhanced if there is a credible possibility that the supplier might enter the buyer’s