PEST analysis 2

PEST stand for politic, economy, social and technology.

POLITICAL. please dont be misunderstood with this word. Actually politics have close relationship with the rules, regulation, procedure, policy, Act, Ordinance, etc. Therefore what it means is the new law introduced by the federal or state government or even the town council. Law will effect the business. Malaysia is a developing country. The government is trying its best to teach its people to give priority in so many approaches. Now it is introducing the Category of Eating Place. Cat A, B and C. A is the cleanest. This is just an example. What happen to your restaurant if the authority classify your restaurant to Cat C?

The govt may decide anytime soon to increase the price of petrol. There is a clash here between POLITICAL and ECONOMY factor. this issue can be discussed in both topic. but let us look from the economy perspective. if the price increase, cost of transportation will follow suit. next is the price of all consumer goods. eventually there will be pressure by all, to increase the salary. so in order to survive, you have to sell quality goods or services but at a very reasonable price.

SOCIAL is another factor here. as I mentioned, most business is now focussing to the middle income group. they make up the most in the market or in the community. today new Myvi is coming into the market. Poor people will stick to their old cars. The lowest of the middle income group and those looking for second cars, will rush to buy this car. The upper middle income will buy BMW and rolex watches but they will buy the cheapest version. So now you see BMW is selling their car at prices most people can affort to buy. same goes to houses prices. another issue here is the young people who make up majority of the population. what do they want? all business are trying to cater their needs. same goes to kopitiam. most kopitiam has wi-fi. why? they have to subscribe to astro and allow customers to lepak in their shop. those days, the restaurant owner will chase away people who come to lepak.

last one is TECHNOLOGY. we cant run away from this phenomena, we cant.