The PEST framework is an analysis of political, economic, social and technologic

Question

The PEST framework is an analysis of political, economic, social and technological factors outside of your organization, which can affect its activities and performance. There are a number of variants of this model. Which of the following would be an example of a question that could be addressed using the PEST framework:

Question options:

A)    Corporate tax rates are cut substantially (political), resulting in rising capital investment, employment and opportunity (economic, social) leading to rising labor rates (economic, social) leading companies to invest further in labor saving innovation (technology).

B)    Increased demand for food safety and quality (social) drives consumer to choose more healthy food versus high salt, low quality (economic) but also new regulations to safeguard food supply (political). As a result companies must invest in higher safeguards and better processes (economic, technology).

C)    Both A and B above.

D) Neither A nor B above.

A)    Corporate tax rates are cut substantially (political), resulting in rising capital investment, employment and opportunity (economic, social) leading to rising labor rates (economic, social) leading companies to invest further in labor saving innovation (technology).

B)    Increased demand for food safety and quality (social) drives consumer to choose more healthy food versus high salt, low quality (economic) but also new regulations to safeguard food supply (political). As a result companies must invest in higher safeguards and better processes (economic, technology).

C)    Both A and B above.

D) Neither A nor B above.

Explanation / Answer

Both of the statements can be addressed by the PEST framework

so the option is:

C)    Both A and B above.

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