Global Environmental Scan PEST Analysis
Global Environmental Scan PEST Analysis
What You Will Learn…
� PEST Analysis � Political, economic, socio-cultural, and
technological factors that affect international business (PEST)
Review
� What are the 3 types of market segmentation? 1. Demographic (age, gender, income,
occupation, etc.) 2. Geographic (local, state, regional, national,
global) 3. Psychographic (attitudes, interests, opinions,
& lifestyles)
Identifying & Analyzing Markets
� Surest way for businesses to connect with customers?
� Know the people well! ◦ Where they live ◦ Income Level ◦ Age ◦ Ethnic Background ◦ Values ◦ Interests
Build a Global Perspective � Geographic segmentation is important for
multi-national and global businesses and brands
� Regional and national marketing programs to alter: ◦ Products ◦ Advertising ◦ Promotion
� Meet the individual needs of geographic segments
Global Environmental Scan-PEST � Political Factors ◦ Government Stability ◦ Trade regulations and agreements ◦ Laws that impact company operations
Global Environmental Scan-PEST � Economic Factors ◦ Infrastructure ◦ Quality and cost of labor ◦ Taxes ◦ Standard of living ◦ Foreign exchange rates
Global Environmental Scan-PEST
� Socio-Cultural Factors ◦ Language and Symbols ◦ Holidays and Religious Observances ◦ Social and Business Etiquette
Global Environmental Scan-PEST � Technological Factors ◦ Measurement systems ◦ Electricity voltage standards ◦ Use of computers, faxes, voice mail, cell
phones and Internet
PEST In-Class Activity � You have bee asked to perform a global
environmental scan (PEST) whether or not it would be profitable to sell an electric razor a company produces in a foreign market
� Choose a foreign country and present your findings informally to the class today (2-3 minutes)
� Use the World Fact Book as a resource (search on Google)