PEST ANALYSIS

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1. Political & economic factor

WTO (World Trade Organisation)

United Kingdom (U.K) (1 January 15) and Europe has a member of WTO. So AFGEPs (Agri-food & Equipment Group) competitors from Europe will easily get entry and enjoy same benefit within U.K. directly increase competitive.Political stable

U.K has a stable politic, that no war, employee strikes. Since AFGEP has basement in U.K. They can develop their business smoothly without confront problem of political.

Economic factor

AFGEP has continuous explore their business to Europe country or within U.K. So economic factor will influence that activity, such as interest rate of capital, unemployment rate in country, spending power, inflation rate, GDP (Gross Domestic Product)

. Legal factors

Government rules and regulation

Because of Europe country apply the health and safety regulation, So AFGEP farming transport will difficult gain entry to Europe. Other rules & regulation like company law, commercial and consumer law, employment law and the law of carriage and transport that also are obstacle.

Legislation

AFGEP must always review of legislation; any proposed of changing legislation, AFGEP must take it into consideration of development the organisation strategic. E.g. Green environment issue like pollution of air, water & land, disposal waste product.

Enjoy some of the legislation benefit like direct financial assistance that includes capital allowances and investment grants, business expansion scheme.

. Social and cultural factor

Decrease demand of U.Ks farming product

Since occur outeak of foot & mouth epidemic. Europe country has ostracism the farming product from U.K. Farming transport & Agri-cultural feedstocks is a complementary product of farming product that will affect the sale volume.

Change of customer taste

Domestic gardening equipments are more potential division in currently situation. Because either U.Ks & Europes consumer have change their living attitude, they likely make some plantation to they housing area.

Relate product

Beef is one of the ingredients of pet food. So that also be influence directly

4. Technology factor

Increasing pace of change in technology

Advance technology causing the product design life cycles to be shorter. Customer demand of new and technologically advance product. Government set the rules to protect environment, if AFGEP not develop new a new technologic product that market share of AFGEP product will drop also facing threats of strong competitors.

Production line

Advance technology machinery can help AFGEP increase quantity and decrease the cost of product, that allow AFGEP gain market share with competitive price.

No technology equipments support the communication with each business point like implement an EDI (Electronic Data Interchange), MIS (Management Information System). Cannot centralised and operate in formal organisation procedure.

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