Jewelry : Pest Analysis

PEST ANALYSIS

is a poltical / economic/ socio/technology analysis of factors

which could affect an organization.

POLITICAL

-government stability

-government laws

-government barriers

-government laws on environment

ECONOMICAL

-gdp growth

-pricing laws

-trade laws

-tariffs

-financial stability

-export laws

-import barriersational

SOCIAL

-demographic

-educational levels

-lifestyles

-per capita income

-social norms

TECHNOLOGY

-incentives for research / development

-new technology

-importation laws on technology

-duty on imports of technology

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PORTER'S DIAMOND OF NATIONAL ADVANTAGE

PORTER argued that a nation can create new advanced factor

endowments such as skilled labor, a strong technology and

knowledge base, government support, and culture. PORTER

used a diamond shaped diagram as a basis of a framework

to illustrate the determinants of national advantage. The

diamond represents the national playing field that the

countries establish for their industries.

The points of the diamond are described as follows

1.FACTOR CONDITIONS

-a country creates its own important factors such as skilled

resources and technological base.

-these factors are upgraded / deployed over time to meet

the demand.

-local disadvantges force innovations. new