PEST Model Infographic

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PEST analysis refers to the analysis of macro environment, where P stands for politics, E for economy, S for society and T for technology. When analyzing the external background of enterprise groups, these four factors are usually used to analyze the situation faced by enterprise groups.

1. Political and Legal Environment

Political environment mainly includes political system and system, political situation, government attitude and so on. The legal environment mainly includes the laws and regulations made by the government.

2. Economic Environment

The key strategic elements that constitute economic environment: GDP, interest rate level, fiscal and monetary policy, inflation, unemployment rate, resident disposable income level, exchange rate, energy supply cost, market mechanism, market demand, etc.

3. Social and Cultural Environment

The biggest impact is on population, environment and cultural background. Population environment mainly includes population size, age structure, population distribution, ethnic structure, income distribution and other factors.

4 Technology Environment

Technological environment not only includes invention and creation, but also the emergence and development trend of new technologies, new processes, new materials and application background related to the enterprise market.

PEST Analysis Example

The figure below shows a PEST Analysis example of the new energy vehicles industry.

PEST Analysis Example New Energy Vehicle Industry

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