PEST analysis method: Used to analyze the macro environment. The macro environment, also known as the general environment, refers to the various macro forces that affect all industries and enterprises. Analysis of macro environmental factors. Because different industries and enterprises have their own characteristics and business needs, the specific content of the analysis will vary, but the four types of analysis of politics (politics), economics (economy), technology (technology) and society (society) are usually addressed for the main external environmental factors:
Political environment: The key indicators that make up the political environment are: political system, economic system, fiscal policy, taxation policy, industrial policy, investment policy, number of patents, defense expenditure level, government subsidy level, and people's participation in politics.
Economic environment: The key indicators that make up the economic environment are: GDP and growth rate, total import and export and growth rate, interest rate, exchange rate, inflation rate, consumer price index, disposable income of residents, unemployment rate, labor productivity, etc.
Social environment: The key indicators that constitute the social and cultural environment are: population size, gender ratio, age structure, birth rate, death rate, ethnic structure, women's fertility rate, life style, purchasing habits, education status, urban characteristics, religious belief status and other factors.
Technological environment: The key indicators that constitute the technological environment are: the invention and progress of new technology, the speed of depreciation and obsolescence, the speed of technology update, the speed of technology dissemination, the speed of technology commercialization, and etc.
Toy Industry PEST Analysis Example
As mentioned before, Because different industries and enterprises have their own characteristics and business needs. This is a PEST Analysis performed to current situation of the toy industry.
