1. PEST AnalysisPEST Analysis
- By Prof. Purvish Shah
BE ( Mech), PGDBM (Gold Medalist)

2. PEST Analysis:
P – Political
E – Economical
S – Socio cultural
T – Technological
Used as decision making tool at the time of
launch of new
product/business/model/strategy

3. POLITICAL:
-Government type and stability
-Freedom of press, rule of law and levels of
-bureaucracy and corruption
-Regulation and de-regulation trends
-Social and employment legislation
-Tax policy, and trade and tariff controls
-Environmental and consumer-protection
legislation
-Likely changes in the political environment

4. ECONOMIC:
-Stage of business cycle
-Current and project economic growth, inflation and
interest rates
-Unemployment and labor supply
-Labor costs
-Levels of disposable income and income distribution
-Impact of globalization
-Likely impact of technological or other change on the
economy
-Likely changes in the economic environment

5. SOCIO – CULTURAL:
-Population growth rate and age profile
-Population health, education and social mobility, and
attitudes to these
-Population employment patterns, job market freedom
and attitudes to work
-Press attitudes, public opinion, social attitudes and
social taboos
-Lifestyle choices and attitudes to these Socio-Cultural
changes

6. TECHNOLOGICAL:
-Impact of emerging technologies
-Impact of Internet, reduction in communications costs
and increased remote working
-Research and Development activity
-Impact of technology transfer

7. PEST ANALYSIS – AVIATION SECTOR ( INDIA)
POLITICAL:
-Liberalization of the Sector
- Excise Duty and Sales Tax on Aviation Turbine Fuel
- Modernization of Airports
- Interface form Other Agencies
- Entry Barriers for New Players
ECONOMICAL:
- Contribution to Economy
- Rising Fuel Costs
- Investments in the Sector

8. SOCIAL:
- Developments in Airport Cities
- Employment Opportunities
- Ensuring a Level Playing Field
- Safety Regulation
TECHNOLOGICAL:
- Growth of Electronic Ticketing
- Satellite based Navigation Systems
- Technical Cooperation with EU

9. PEST ANALYSIS – TATA buys JAGUAR
POLITICAL:
- Strong tax incentives for inbound investors
- Strong political motivation for globalization
- Strong reputation and trust
- Adaptive legislative framework
- Negative effect on the IT industry after 2009 as the government’s initiative
of Tax holiday under STPI expires (Thinking Street 2007).
ECONOMIC:
- Strong technical skills
- Strong export base
- Strong infrastructure links
- Competitive labour cost model
- Adaptive investment authority to technological investments
- Highly mobile work force

10. SOCIAL:
- Strong science and educational culture
- Strong management culture
- Adaptive English speaking population
TECHNOLOGICAL:
- Strong R & D culture and facilities
- Strong tie-ups with western technology companies
- Adaptive to new technologies