PEST Analysis of E-shop

The analysis examines the impact of each of the factors on the business. The results can be used to take advantage of opportunities and to make contingency plans for threats when preparing business and strategic plans (Byars, 1991). Kotler (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
 There are structural changes in Public Administration.
 Actions are taken to reduce the budget deficit
 Non-implementation of electronic governance.
 Government cutbacks.
 Political environment of Greece is very unstable.
 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
 Governments do not encourage the development of entrepreneurship. Tax is quite heavy, and consists one of the barriers for new companies’ entrance.
 Employment laws: A lot of demonstrations and strikes.
 European Union announces new regulation and especially in high tech sector in regards to the raw materials, electromagnetic interference in production stage as well as in usage and in recycling policy.
 Due to EU trade restrictions and tariffs do almost not exist, Europe and the rest of world is an open field for everybody.