The External Environment DEPEST

1
The External Environment(DEPEST)
Demographic
Technological
Socio-Cultural
Economic
Political/Legal
Ecological
2
The External Environment(DEPEST)

• Demographic
• Population size/growth
• Geographic distribution
• Age mix
• Ethnic mix
• Education mix
• Lifestyles

Demographic
3
The External Environment(DEPEST)

• Economic
• Income distribution
• Disposable income
• Inflation rates
• Wage Rates/Salaries
• Savings rates
• Interest/exchange rates
• Trade deficits/surpluses
• Budget deficits/surpluses
• Gross domestic product
• Gross Provincial/State product
• Consumer debt ratios

Economic
4
The External Environment(DEPEST)

• Political/Legal
• Tax laws
• Competition/Antitrust laws
• Labor laws
• Regulating legislation
• Trade associations regulating bodies
• Special Interest Groups

Political/Legal
5
The External Environment(DEPEST)

• Ecological
• Concerns about pollution
• Cost of environmental compliance
• Shortage of raw materials
• Increasing energy costs
• Pressures from Special Interest Groups

Ecological
6
The External Environment(DEPEST)

• Socio-Cultural
• Existence of subcultures
• Shifts in cultural values preferences
• Ethnic mix in the workforce
• Women in the workplace
• Unionization
• Work attitudes

Socio-Cultural
7
The External Environment(DEPEST)

• Technological
• Product innovations
• Applications of knowledge
• Technological changes and utilization
• RD expenditures
• Communication technologies
• Accelerating change

Technological
8
Porters 5-forces