Markets, marketing and strategy Essay Example | Topics and Well Written Essays - 2000 words

Markets, marketing and strategy - Essay Example A PEST analysis is an analysis of the external macro-environment that affects all firms. P.E.S.T. is an acronym for the Political, Economic, Social and Technological factors of the external macro-environment. Such external factors usually are beyond the firm’s control and sometimes present themselves as threats. Speaking about the political factors of the merger to take place, the principal ones to consider are trade regulations and tariffs, as BHI performs business in the three different locations all over the world, as well as such merger may be taken as the striving of both company for creating a monopoly. Taxation should also be taken into account; however, as BHI itself used to successfully run all three businesses, and the European Commission has approved on the merger, these factors are not threats here, though should be kept under control. Economic factors are also present here, as the merger presupposes intervention into business in other countries; however, as far as the businesses perform successfully, there is no threat of getting into worse infrastructure quality or facing difficulties with employment; Reckitt Benckniser has to closely consider the skill level of workforce, especially in business unit operated by BHI in Thailand, which may appear an opportunity for quality improvements. Social and technological factors here don’t represent any significance, as the businesses have been performing for a certain period of time and have both acquired stable position on the market.