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PESTED Analysis and Business Environment Insights

The document outlines macroenvironmental forces affecting businesses through a PESTED analysis, covering demographic, economic, socio-cultural, technological, ecological, and political/legal factors. It also discusses microenvironmental forces, including customers, suppliers, resellers, competitors, and the general public, emphasizing their impact on business operations. Lastly, it presents opportunity assessment methods, distinguishing between qualitative and quantitative assessments to evaluate business feasibility.

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Glaiza Ambeguia
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6 views2 pages

PESTED Analysis and Business Environment Insights

The document outlines macroenvironmental forces affecting businesses through a PESTED analysis, covering demographic, economic, socio-cultural, technological, ecological, and political/legal factors. It also discusses microenvironmental forces, including customers, suppliers, resellers, competitors, and the general public, emphasizing their impact on business operations. Lastly, it presents opportunity assessment methods, distinguishing between qualitative and quantitative assessments to evaluate business feasibility.

Uploaded by

Glaiza Ambeguia
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

I.

Macroenvironmental Forces (PESTED Analysis)

Demographic

Refers to population characteristics such as age, gender, income, education, and


population growth.

Additional example: A rise in single-person households creates opportunities for small-


pack food products.

Economic

Relates to income levels, inflation, recession, interest rates, and economic cycles.

Additional example: Low interest rates encourage entrepreneurs to expand using


loans.

Socio-Cultural

Covers beliefs, lifestyles, attitudes, and social trends.

Additional example: Growing fitness culture increases demand for healthy meal
subscriptions.

Technological

Involves innovations, automation, AI, and new production methods.

Additional example: Mobile payment systems allowing small vendors to go cashless.

Ecological

Focuses on environmental concerns and sustainability.

Additional example: Water scarcity increasing demand for water-saving appliances.

Political and Legal

Includes laws, regulations, trade policies, and government programs.


Additional example: New minimum wage laws affecting labor-intensive businesses.

II. Microenvironmental Forces in Business Environment

Internal environment includes factors within the firm such as management,


employees, technology, competitors, suppliers, customers, government, and the
public.

1. Customers

Ex: A sudden increase in online shoppers pushes a small clothing store to launch an e-
commerce website.

2. Suppliers
Dependence on a single supplier becomes risky when delivery delays disrupt
production.

3. Resellers

Online marketplaces like Shopee or Lazada prioritize resellers who pay for advertising.

4. Competitors

A competitor introduces free delivery, forcing others to match the offer.

5. General Public

Community support helps a local business gain trust and customer loyalty.

Additional example: A supplier shortage forcing businesses to find alternative raw


materials.

III. Opportunity Assessment

Qualitative Assessment (QAL)

Focuses on non-financial factors such as mission alignment, competitive advantage,


and management capability.

Additional example: Evaluating whether a business idea matches the founder’s skills
and values.

Quantitative Assessment (QAN)

Uses financial data and numerical tools to measure feasibility.


Common tools include NPV, IRR, Payback Period, and sensitivity analysis.

Additional example: Calculating break-even sales volume before launching a product.

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