PEST sub-analysis
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PEST Analysis
by Nathanael Okhuysen
When preparing for the future, companies engage in strategic planning. This process looks at factors both inside and outside the company, and frequently employs a SWOT analysis, or similar framework, to organize the information generated. Strategic planning that examines external factors is called environmental scanning.
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Storyboard Description
Strategic Planning and management & environmental scanning - PEST
Storyboard Text
- Slide: 1
- Raw Materials
- Increased cost of mineral rights is not offsetting lower personnel and equipment costs for new deposits. Raw material costs are projected to rise over the next 5 years.
- Slide: 2
- Inflation
- Inflation rates of the dollar are low and trending down. This has no direct impact on widgets, but could impact exchange rates in the next year.
- Slide: 3
- Global Economy
- The global economy continues to be healthy, but EU instability and economic downturns in Brazil, Russia, and Saudi Arabia threaten to disrupt growth.
- Slide: 4
- Interest Rates
- First National Bank of Anytown
- Interest rates remain low. Credit is readily available for business expansion.
- Slide: 5
- Local Unemployment
- Several of our primary manufacturing locations are experiencing very low unemployment. This could increase turnover and/or wages in the near future.
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