Pest Analysis Of Wine Industry

In a globalized economy such as the one we have today it is easier to find goods from all over the world in our supermarkets and different other businesses thanks to the free market agreements like NAFTA. However, in order to obtain these imported goods, businesses must follow regulations and pay certain tariffs in order for the product to be not only shipped into the country but also legally sold. One other factor that alters the amount of imported goods into a country its the diversity of the people living in it. Overall, free trade among nations is good for the global economy and allows for a larger variety and cheaper goods. But as the economy fluctuates and trade agreements are re- negotiated, the cost of imported goods keeps on rising,

Diversification: Diversification is a way for a company to enter a brand new market with the same brand name, in the case of a wine company their diversification could be in making other wine products such as wine openers, decanters or glasses.

PEST

Small and big companies use the Pest Analysis as part of their strategic management in order to avoid costly mistakes, and benefits smaller businesses by giving them the chance to discover new markets. So what is a Pest Analysis? The acronym pest stands for:

Political - This aspect researches the government policies and continued changes in legislation of the country state and/or city the company will do business. Taxes, labor laws, and international relations are the issues that most affect the aspect of this part of the analysis.

Economic - This portion of the analysis focuses on supply and demand, growth, exchange rates, and the overall economy of the place the business will be taking place.

Social – Targets the possible customer’s environment such as, demographics, age, lifestyle trends, and cultural attitudes. Basically the social aspect scouts the neighborhoods to mathc their client with the right

There are several aspects of importing goods that benefit many areas of a region among the most important is the creation of employment since the markets have the option to diversify in many regions. This diversification creates economic growth not only in the big scale but also with the smaller businesses and companies which in the long run creates competition which makes the non-imported goods better benefiting the customer. By exporting and importing goods, a country or region creates what is called comparative advantage, which gives it the possibility to have everything it needs without depleting its resources, and it gives it the opportunity to invest in other areas where they couldn’t do it before. After all international trade is good for everyone starting from the GDP of a nation to a small family owned