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PEST Analysis of E-shop

The results can be used to take advantage of opportunities and to make contingency plans for threats when preparing business and strategic plans (Bears, 1991). Kettle (1998) claims that P. E. S. T analysis is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations. The use of P. E.

S. T. Analysis can be seen effective for business and strategic planning, marketing planning, business and product development and research reports. P. E. S. T. Also ensures that company’s performance is aligned positively with the powerful forces of change that are affecting business environment (Porter, 1985). Economic conditions are influenced by political and government policy, being a major influence affecting government decisions.

The issue of whether European countries join, or remain outside, the single European currency is a case in point. At any one time either exported or imported goods can seem expensive or inexpensive, dependent upon currency exchange rates. There are many other ways, however, in which government decisions will affect organizations both directly and indirectly, as they provide both opportunities and threats. Political Factors 0 There are structural changes in Public Administration. Actions are taken to reduce the budget deficit 0 Non-implementation of

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electronic governance. 0 Government cutbacks. 0 Political environment of Greece is very unstable. 0 Government’s taxation policies and decision about the increasing prices have and VAT increase affected the market by affecting the buying power of the individuals in Greece

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