Pest Analyze of Cosmetics Business in China. Essay

2565 Words Jan 2nd, 2013 11 Pages
PEST analyze of cosmetics business in China.

In order to reserve the objectiveness of value judgment, simultaneously, to give effective advice to the company which we selected before, we decided to use PEST to analysis environment in cosmetics industry.

P
“P” means political. Generally, politics will give great impact on firms’ activities. The factor includes political institution, policy and law. These elements usually influence company’s operation, thus, the enterprise should pay attention to several issues bellow: * Whether the political environment is stabilizing? * Will government policy influence laws that regulate or tax your business? * What is the government's position on marketing ethics? * What is the
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E
“E” means economic. This factor can be described as the development of national economy of the total situation, the international and domestic economy and economic development trend, enterprise facing the industry environment and competitive environment and so on.
There are 5 elements in economic environment: * Social-economic structures: It refers to the national economy in different economic composition, different industry departments and social reproduction in all aspects of the whole national economy when mutual adaptability, the proportion of the amount and the arrangement of the status of the association.
The social and economic structure is mainly includes: industrial structure, distribution structure, exchange structure and consumption structure and technical structure. Among them, the most important is the industrial structure.
Here, we will talk about the industrial structure. At present, our country industrial structure in the first and second industry proportion on the high side, the proportion of the tertiary industry is obviously low, and unreasonable internal structure and low efficiency. And the world most countries, our country of added value of the tertiary industry in GDP is low, the proportion in China in 2005, the rate is only 39.9%.

In the employment structure of international comparison, it also showed that China's first, second industry specific gravity slants big, and the third industry smaller proportion. Since the

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