The Pest analysis examines the external environment and the global factors that may affect a business. This provides a quick representation of the external pressures facing a business, and their possible constraints on a business. The P.E.S.T factors are:
Political
Economical
Social
Technology
Political:
This is concerned with how political developments, regionally and internationally might affect a businesses strategy. This can include legislation, such as consumer laws, regulation and the government's view of certain activities.
An example of a political affect that may affect "Bling-Bling" is Legislation this being the trade descriptions act. The Trade Description Act 1968-prohibits false or misleading descriptions of goods or services. Therefore this means it is illegal to include designs on the beaded jewellery and advertise this on posters when these are not present on the jewellery itself. Also "Bling-Bling" can not say that the beaded jewellery is made out of metal when they are made from plastic, this is falsely describing the goods and misleading the consumers.
Bling-Bling Skywriting, New York City
Bling-bling hip hop jewelry from flickr photo by J...
Bling Bling Bling!If the law is broken there are consequences to face. If a customer has complaints about false advertising of the products they could notify the office of Fair Trading or the Advertising standards Authority. These authorities set up to monitor advertising in the U.K it makes sure that advertisers confirm to the British Code of Advertising and sales promotion Practise. This code stresses that all advertisements must be legal, decent, honest and truthful.
This therefore means that "Bling-Bling" must ensure truthful and honest advertising, meaning from the market strategy chosen include accurate pricing, location of where the stall will be set up and times of selling e.t.c.
Legislation is important and must be abided by the business. For .e.g. if a new health and safety law came to force that 'All Jewellery shops must ensure their jewellery...