PEST Analysis

PEST Analysis. Question A

  • In recent years, we have observed an increase in foreign production throughout the world. What PEST factors would you consider to be most relevant to H & M’s HR managers when trying to figure out if they should open up a plant in Vietnam to make clothes?

Question B

  • Chapter 16 emphasized the processes required to implement a high-performance work system. What are the most critical ways to successfully implementing one?

W8 Lecture 1 “We are More International than Imagined”

Human Resource Strategies

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We are More International than Imagined

As a preventive medicine/environmental health leader, I have conducted hundreds of environmental health and safety inspections to ensure that facilities were in compliance with federal, state and local regulations.  From the military perspective, the most stringent rules are embraced, which are typically at the federal level to ensure the safety of troops from a variety of aspects, all over the world.

However, what might we run up against? Political factors? Economic Factors? What about Sociocultural Factors? Let’s not forget about Technology! The same is true for other environments as well, namely businesses.

As a result, how do we go about managing these challenges like the above mentioned?

We can conduct a PEST Analysis.

When conducting a PEST analysis, we scan different contextual environments to understand the long-term trends and how they impact a company. In the military we did reconnaissance. As HR practitioners PEST analyses helps us to:

  • spot business or personnel opportunities
  • spot trends in business environment to proactively adapt to changes
  • avoid implementing HR practices in a particular country where they may fail and
  • break free of old habits and assumptions about how people should be managed to help bring about innovation ideas for the entire company.

The key in conducting a PEST analysis is that you need to decide upon the appropriate environmental factors that need to be considered and assessed. In the environmental health/preventive medicine field, yes, we did look for pests and took corrective action and measures to get rid of them!

Required textbook reading for this week:

  • Chapter 15
  • Chapter 16

PEST Analysis

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