Pest Analysis for market occupying Essay

Pest analysis: The following pest analysis has been created for three markets separately. Pest analysis stands for political, economic, socio-cultural and technological environment. Use of the pest analysis guides our company to work according to the changes taking place in these categories. Moreover good use of the analysis assist the company to avoid taking action that is condemned to failure from the outset, for reason beyond its control. The following is a pest analysis created for the market occupying Dubai and London. Socio-cultural: There is vast cultural difference in regard to locals in these countries. Both the countries’ population consists of various other nationalities. Dubai and London has tolerance of other religions and culture. Population density: London (12,450/sq mi (4,807/km2), Dubai 408.18/km2 (1,057/sq mi). Political: Legal and regulatory bodies: Both the countries share strict aviation based regulation and laws. Regulatory body for London: CAA (civil aviation authority) Regulatory body for Dubai: DCAA (Dubai Civil aviation Authority) There is no such political conflict in this market, which makes business between these two countries quite versatile. Market: Dubai and London Economical: London: Gross Domestic Product (GDP) increased 0.8 per cent Dubai: finance official predicts the UAE economy will top US$272 billion (S$361 billion)- 2010 Foreign exchange market: Pound sterling- 12.9% (daily share). London’s largest industry is finance. Tourism is one of London’s prime industries. Dubai is also an international financial centre and has been ranked 37th. Technological: Dubai’s industry growth had given way for technological advancement. Use of  technology has increased: London based companies in Dubai. London has various companies advising on the use of new technologies to other companies. Airlines based in Dubai use advanced technology to operate their businesses in London and Hong Kong. Pest analysis occupying the market in Dubai and Hong Kong: Socio-cultural: Hong Kong: the culture is a mix of the Chinese roots with influences from its time as a British colony. Dubai: Dubai is a highly cosmopolitan society with a diverse and vibrant culture. Honk Kong Population density: 6480/km2 16,576/sq mi. Dubai 408.18/km2 (1,057/sq mi). Dubai and Hong Kong has an established business link, which is an advantage to the aviation industry. Political: Legal and regulatory bodies: Dubai’s aviation regulatory body: DCAA (Dubai Civil aviation Authority), Hong Kong: Civil Aviation Administration of China. Government of Hong Kong: Non-sovereign partial democracy with unelected executive. Hong Kong continues to follow the English Common Law tradition established under British rule. Dubai and Hong Kong has no existing political conflicts. Market: Dubai and Hong Kong Economical: Hong Kong: an important centre for international finance and trade. Hong Kong dollar: 2.4% (daily share) Hong Kong GDP growth rate: economy is expected to grow 5 percent in 2010, may shrink 2 percent this year. Unemployment: 4.3% (July 2010). Main exports partners: China, US and Japan. Technological: Dubai’s industry growth has given way for technological advancement. The Innovation and Technology Commission (ITC) in Hong Kong supports applied  research and development (R&D) and technology transfer and application. Hong Kong has seen a rise in technological advancement which has contributed to economic and social development. Pest analysis for market occupying in London and Hong Kong: Socio-cultural: Hong Kong: the culture is a mix of the Chinese roots with influences from its time as a British colony. In terms of population, London is the 25th largest city. London is also home to sizeable Muslim, Hindu, Sikh, and Jewish communities. Social trend (London and Hong Kong): career oriented, working class, low level of death rate. Technological: The Innovation and Technology Commission (ITC) in Hong Kong supports applied research and development (R&D) and technology transfer and application. Hong Kong has seen a rise in technological advancement which has contributed to economic and social development. London has a vibrant and growing IT sector. The region boasts over 350 companies with approximately 8000 employees. Economical: The Hong Kong Stock Exchange is the 6th largest in the world. London is a major financial centre for international business and commerce. Public debt: London: 68.5% of GDP (2009 est.). Hong Kong: 14.5% of GDP (2008 est.) Labor force: Hong Kong: 3.64 million (2007 est.) London: provincial unemployment rate fell from 8.9% to 8.6%. (2010) Market: London and Hong Kong Political: Legal and regulatory bodies: Hong Kong: Civil Aviation Administration of China. London: CAA (civil aviation authority) Hong Kong follows a free trade policy and hence  maintains basically no barriers on trade. There are various laws and regulations implied on businesses being set up in London, even for trading as well.