MANAGEMENT

Detailed explanation-1: -In PEST analysis, ‘P’ stands for Political environment. It includes government regulations or any defined rules for that particular industry or business. It also involves study of tax policy which includes exemptions if any, employment laws, environment laws, etc.

Detailed explanation-2: -A PESTEL analysis is used to identify threats and weaknesses which are used in a SWOT analysis. Political factors include government policies, leadership, and change; foreign trade policies; internal political issues and trends; tax policy; regulation and de-regulation trends.

Detailed explanation-3: -A PEST analysis covers four elements: political, economic, social and technological factors.

Detailed explanation-4: -Political: Tax policy; environmental regulations; trade restrictions and reform; tariffs; political stability. Economic: Economic growth/decline; interest, exchange, inflation and wage rates; minimum wage; working hours; unemployment (local and national); credit availability; cost of living.

Detailed explanation-5: -The political-legal environment is a combination of a lot of factors such as the current political party in power, the degree of politicization of trade and industry, the efficiency of the current government, government policies, current legal framework, the public attitude towards the economy, etc.