Social factors include the demographic and cultural aspects of the external macroenvironment. These factors affect customer needs and the size of potential markets. Some social factors include:
Technological factors can lower barriers to entry, reduce minimum efficient production levels, and influence outsourcing decisions. Some technological factors include:
A PEST analysis examines the Political, Economic, Social, and Technological environments that affect industries and companies.
Here's a brief description of what constitute PEST factors:
Political factors include government regulations and legal issues and define both formal and informal rules under which the firm must operate. Some examples include:
Economic factors affect the purchasing power of potential customers and the firm's cost of capital. The following are examples of factors in the macroeconomy: