Milestone makes decisions and the way it operates. Being

 

 

 

 

Milestone
Three – PEST Analysis

By

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

Crystal
Newell

Southern
New Hampshire University

January
7, 2018

 

 

 

 

 

 

 

 

           

 

 

PEST
Analysis

Aside from a company’s internal
resources and factors of the industry, there are several other macro-economic
factors that can have an impact on the company’s performance. When considering
new ventures or new product ideas, these factors need to analyze carefully to
determine how big a role they will play in the success of the company. The PEST
Analysis is a common tool used to examine the macro-economic factors. According
to Economic Times “PEST Analysis helps organizations take better business
decisions and improve efficiency by studying various factors which might
influence a business such as political, economic, social, and technology.”
(ET, 2017) With Wantable being a subscription box company which is a part of the
retail industry, it operates within a macro environment. 

Political Factors

The government policies,
laws, and regulations, can have both positive and negative effects on the
retail industry. The country’s political activity can impact sales, purchases
and the position retail products in any retail market domain. In the case of
Wantable, the political factors that impact them are tax policies, labor laws,
and what goods can be provided within the country. Depending on the service
provided, some states are not subjected to tax. But when a business such as
Wantable is providing products on a subscription basis, product base taxes laws
will apply. “When a customer buys a
product, businesses merely apply the sales tax laws as they stand at that time.
Subscription-based businesses face challenges in keeping up with those changes
and applying them” (Faris, 2016). 

Economic Factors

Economics is
very important for Wantable. It impacts the way the company makes decisions and
the way it operates. Being in the retail business, sales for Wantable are
driven by economics. A booming economy allows for an increase in disposable
income for consumers. This disposable income can increase the number of box
subscribers and the ability to retain those subscribers. However, a bad economy
makes the consumer focus on the necessities of life and cause them to spend
less. This leads to a decline in sales and forces retailers such as Wantable to
lower prices. Besides sales, other economic factors that can impact Wantable
includes interest rates and exchange rates. Changes in interest rates can
affect the company’s cost of capital and therefore how much the company can grow
and expand. The exchange rates will affect the cost Wantable pays exporting and
importing the supply of goods. It will also affect the price Wantable charge
its customers for their monthly products. (Pratap, 2017)

Social Factors

When there are
changes in social values, these trends can have an impact on the goods
retailers relate to consumers. Being in the retail industry, Wantable has to
deal with the pressures of developing and selling products that implement a
social responsible business practices. Cultural aspects are a major impact of
social factors, Social factors that Wantable could face are career driven
consumers, age of distribution, and the health conscious. (Hofstede, 2001) With changes in health industry and so many people
become more aware and health conscious, Wantable created the Fitness Edit box
to cater to those that are working out more and can do this in a fashionable
way. The social factor trends is what drives the demand for the products and
service that Wantable offers.

Technology
Factors

 Technology is a major role for
Wantable. Being a subscription box company, everything is done in an online
environment. Technology is the way Wantable communicates with it’s customers.
Technology in itself, is Wantable. It allows the company to advertise and reach
new customers. Social media is an outlet that a subscription box company such
as Wantable uses to reach a mass of new customers, to share other’s experiences
with the company. Without technology and it’s advances, Wantable would not
remain successful as it does not have storefront locations. Another
technology factors to analysis would be research and development activity also
known as R activity. R is an investigation that a company performs
to improve their existing procedures and products. This investigation can then
lead to developing new products and procedures. Investopedia states “R&D is different from most activities
performed by a corporation in the process of operation. The research and/or
development is typically not performed with the expectation or goal of
immediate profit. Instead, it is focused on long-term profitability for a
company.” (Investopedia, 2017)

Conclusion

Companies
within the retail industry usually have no influence or can change the macro
environment and have to adapt to the changes that occur. Performing a PEST
Analysis of the political, economic, social and technology factors are
significant for the decision making, operations, growth and culture of
Wantable. Wantable has to take into consideration each of the factors of the
PEST Analysis and tailor the decisions made for the company to continue to
achieve success.

 

References

Economic Times (2017). Definition of PEST Analysis. Retrieved
from https://economictimes.indiatimes.com/definition/pest-analysis

Faris, S. (2016) Sales
tax and subscription boxes for your online business. Retrieved from https://www1.avalara.com/trustfile/en/blog/sales-tax-and-subscription-boxes-for-your-online-business.html

Hofstede,
G, 2001, Culture’s consequences 2nd ed, New York: McGraw Hill

Investopedia
(2017) Research and development – R&D. Retrieved from https://www.investopedia.com/terms/r/randd.asp

Pratap,
A. (2017) Retail Industry PESTEL Analysis. Retrieved from https://www.cheshnotes.com/retail-industry-pestel-analysis/

 

  

 

 

 

Milestone
Three – PEST Analysis

By

Crystal
Newell

Southern
New Hampshire University

January
7, 2018

 

 

 

 

 

 

 

 

           

 

 

PEST
Analysis

Aside from a company’s internal
resources and factors of the industry, there are several other macro-economic
factors that can have an impact on the company’s performance. When considering
new ventures or new product ideas, these factors need to analyze carefully to
determine how big a role they will play in the success of the company. The PEST
Analysis is a common tool used to examine the macro-economic factors. According
to Economic Times “PEST Analysis helps organizations take better business
decisions and improve efficiency by studying various factors which might
influence a business such as political, economic, social, and technology.”
(ET, 2017) With Wantable being a subscription box company which is a part of the
retail industry, it operates within a macro environment. 

Political Factors

The government policies,
laws, and regulations, can have both positive and negative effects on the
retail industry. The country’s political activity can impact sales, purchases
and the position retail products in any retail market domain. In the case of
Wantable, the political factors that impact them are tax policies, labor laws,
and what goods can be provided within the country. Depending on the service
provided, some states are not subjected to tax. But when a business such as
Wantable is providing products on a subscription basis, product base taxes laws
will apply. “When a customer buys a
product, businesses merely apply the sales tax laws as they stand at that time.
Subscription-based businesses face challenges in keeping up with those changes
and applying them” (Faris, 2016). 

Economic Factors

Economics is
very important for Wantable. It impacts the way the company makes decisions and
the way it operates. Being in the retail business, sales for Wantable are
driven by economics. A booming economy allows for an increase in disposable
income for consumers. This disposable income can increase the number of box
subscribers and the ability to retain those subscribers. However, a bad economy
makes the consumer focus on the necessities of life and cause them to spend
less. This leads to a decline in sales and forces retailers such as Wantable to
lower prices. Besides sales, other economic factors that can impact Wantable
includes interest rates and exchange rates. Changes in interest rates can
affect the company’s cost of capital and therefore how much the company can grow
and expand. The exchange rates will affect the cost Wantable pays exporting and
importing the supply of goods. It will also affect the price Wantable charge
its customers for their monthly products. (Pratap, 2017)

Social Factors

When there are
changes in social values, these trends can have an impact on the goods
retailers relate to consumers. Being in the retail industry, Wantable has to
deal with the pressures of developing and selling products that implement a
social responsible business practices. Cultural aspects are a major impact of
social factors, Social factors that Wantable could face are career driven
consumers, age of distribution, and the health conscious. (Hofstede, 2001) With changes in health industry and so many people
become more aware and health conscious, Wantable created the Fitness Edit box
to cater to those that are working out more and can do this in a fashionable
way. The social factor trends is what drives the demand for the products and
service that Wantable offers.

Technology
Factors

 Technology is a major role for
Wantable. Being a subscription box company, everything is done in an online
environment. Technology is the way Wantable communicates with it’s customers.
Technology in itself, is Wantable. It allows the company to advertise and reach
new customers. Social media is an outlet that a subscription box company such
as Wantable uses to reach a mass of new customers, to share other’s experiences
with the company. Without technology and it’s advances, Wantable would not
remain successful as it does not have storefront locations. Another
technology factors to analysis would be research and development activity also
known as R activity. R is an investigation that a company performs
to improve their existing procedures and products. This investigation can then
lead to developing new products and procedures. Investopedia states “R&D is different from most activities
performed by a corporation in the process of operation. The research and/or
development is typically not performed with the expectation or goal of
immediate profit. Instead, it is focused on long-term profitability for a
company.” (Investopedia, 2017)

Conclusion

Companies
within the retail industry usually have no influence or can change the macro
environment and have to adapt to the changes that occur. Performing a PEST
Analysis of the political, economic, social and technology factors are
significant for the decision making, operations, growth and culture of
Wantable. Wantable has to take into consideration each of the factors of the
PEST Analysis and tailor the decisions made for the company to continue to
achieve success.

 

References

Economic Times (2017). Definition of PEST Analysis. Retrieved
from https://economictimes.indiatimes.com/definition/pest-analysis

Faris, S. (2016) Sales
tax and subscription boxes for your online business. Retrieved from https://www1.avalara.com/trustfile/en/blog/sales-tax-and-subscription-boxes-for-your-online-business.html

Hofstede,
G, 2001, Culture’s consequences 2nd ed, New York: McGraw Hill

Investopedia
(2017) Research and development – R&D. Retrieved from https://www.investopedia.com/terms/r/randd.asp

Pratap,
A. (2017) Retail Industry PESTEL Analysis. Retrieved from https://www.cheshnotes.com/retail-industry-pestel-analysis/

 

 

BACK TO TOP
x

Hi!
I'm Rhonda!

Would you like to get a custom essay? How about receiving a customized one?

Check it out