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Environmental influences

1.3 PEST analysis

 The model was used in earlier papers where it served as a tool for strategic
analysis.

 In a P5 context, it can also be used to identify key performance management
issues.

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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