Table of contentsAware of (P/E/S/T):Political (Legal):Economic:Social (Environment):Technological:Answers:Investment 1:Investment 2:Investment 3: Investment 4: Works Cited: This essay will focus on the key drivers of PEST and the responses that should be made based on the results of PESTEL. Many companies use PEST analysis as a tool for strategic analysis of their brands to determine strategies for the future as well as to monitor the environment in which the company operates. Without taking dynamic processes into account, businesses have little or no chance of surviving in the long term. term. As Yüksel (2012 p.52) points out, “a company must increasingly take into account the environment in which it operates. To meet such needs, business decision-makers must take a strategic approach to managing macro-environmental events, events and operations. (Yüksel, 2012 p. 52)Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an original essayThe essay will provide the main macro-PEST trends that businesses need to be aware of and provide answers that should be made based on these factors, this will be a feature of this essay and will be followed by some suggestions on investments that the company should potentially consider doing. Suggestions will be supported by official articles researched and published online, as these resources constitute the most relevant and up-to-date material and information on political, economic, social and technological trends. “All organizations must identify external factors within their environment that could impact their operations. Many of these will be things that the organization has no control over, but whose implications need to be understood. (Anon, 2018 p. 6). One of the most popular tools is PEST scanning. PEST analysis can also be called PEST analysis. It is a useful method for understanding the business environment as it gives a rigorous idea of ​​the organization's external environment, market growth or decline. PEST stands for political, economic, social and technological factors. Aware of (P/E/S/T): Political (Legal): A growing political trend is a growing demand for cycle lanes in Britain's major cities. Many people in the UK are in favor of their taxes being spent on cycle lanes and feel safer cycling on segregated cycle lanes. “Last year, Transport for London reported a 50% increase in the number of cyclists using some roads where a protected cycle highway had been built.” (Pidd, 2018)Economic: An economic trend that the cycling industry should be aware of is that in 2017 the government announced a new set of vehicle excise duty bands, resulting in major changes to the tax British road car, potential new buyers and car owners. “Only electric and other zero-emission cars are now exempt from tax, with diesel and petrol cars on average more expensive to tax.” (Auto Express, 2018). From April 2018, buyers of new diesel cars will be hit with a road tax that could cost UK drivers significantly more each year. The changes were mainly aimed at diesel cars. “This could lead to diesel owners paying up to £500 a year more to tax their vehicle.”(Smith, 2018) Another factor that businesses need to be aware of is the Brexit issue, which means that there will no longer be free trade between the UK and the EU, which will affect the supply chain. 'supply. “The UK is predicted to suffer a loss of at least £4.5 billion a year if it leaves the EU without negotiating a new trade deal with the EU. » (Market-inspector.co.uk, 2018). However, this means the UK can strike its own trade deals with other new countries. According to Gov.uk (2018), there will be a “new phase in the golden era for UK-China relations”. Social (environment): One social fact that businesses should be more aware of is affordability. “While only 10% of the world's population can afford a car, it is estimated that 80% of people can afford a bicycle. » (Tmr.qld.gov.au, 2018). For many population groups, such as young people or low-income families, this would provide increased mobility. Technological: One of the trends that the cycling industry should respond to is the growing number of social media platforms. For businesses to stay relevant and do good, it is important to adapt and participate in the growth of this mode of marketing for their business. The growth of mobile apps is good news for brands because they make it easier to reach customers. “More than 90% (93%) of smartphone users use apps. » (Ipsos.com, 2018) Another trend that cycling companies should be aware of is the increase in electric transportation. “IHS, a market research firm, predicts that annual sales of battery-powered electric vehicles (EVs) and hybrids will increase from about 2.3 million units in 2014 to 11.5 million by 2022, or 11% of the global market. (McKinsey & Company, 2018). The demand for electric bicycles will increase and sales of electric bicycles are expected to increase significantly in the coming years. “E-bikes are positioned to be one of the biggest beneficiaries of this trend because they are inexpensive compared to cars.” (Emubikes.com, 2018) Answers: Investment 1: The first investment Evans cycling industry should consider is developing a stock exchange with China. From a business perspective, this would mean they are buying a bike or bike details at a lower price. A wise decision would be to consider setting up a factory in China which has a highly skilled and cheaper workforce, as well as expanding operations there, as China is one of the largest markets consumption in the world. “Cheap Chinese labor played a crucial role in building “Industrial Asia,” the name given to the region’s complex of cross-border supply chains. » (Economist.com, 2018) Investment 2: Another investment that Evan Cycles should think about due to high competition is launching a personal app that not only shows the bikes you can buy, but also creates an opportunity to rent bikes. bicycles for people who don't have one. I don't want to invest in a good bike, but I would like to enjoy cycling from time to time. This would include a map showing the user the stores closest to them in the city they are in. Launching an app is another way to reach new potential customers and give old customers a new platform. “Smartphone users spend more time on apps than in previous years and now access more than 30 apps on a monthly basis” (Perez, 2018) Investment 3: The third, 49(5), 454-459.