Page 39 - APM Integrated Workbook STUDENT S18-J19

Environmental influences

1.3 PEST analysis

 This model is used in other papers where it serves as a tool for strategic
analysis.

 In an APM context, it can also be used to identify key performance
management issues. For example:

– the identification of relevant CSFs and the development of KPIs linked to
these

– changes in the macro environment may result in the revision of KPIs and
the targets based around these KPIs

– risk and uncertainty in the macro environment can be identified, monitored
and necessary action taken.

Political Economic

 change of government  interest rates

 new laws  exchange rates

 professional regulations  inflation

 tax  unemployment

Social Technological

 demographics  rate of development and transfer

 culture and lifestyle  innovation

 tastes and fashions  changing cost base

 sustainability issues

Illustrations and further practice

Now read Illustration 1 from Chapter 2 of the Study Text.

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