Using The DESTEP Analysis For Making Business Forecasts
Nowadays, with the help of a DESTEP analysis organizations may easily get the overview of its external environment. Each and every company is faced with some factors they cannot exercise influence on and the factors they can exert influence on. Thus, by Evaluating the DESTEP Analysis, one can easily get the clear information.
The DESTEP theory mainly represents the Demographic, Economic, Social/ Cultural, Technological, Economical and Political factors. These factors may directly or indirectly influence the organization’s operations and clarifies how a company can adjust their strategy with such macro economic factors. These factors can be summed up in the form of PowerPoint presentations or periodic reports to create business forecasts.
In order to carry out a DESTEP analysis successfully; the firm has to consider the factors from all angles. Further on, it results in elucidating the less important and most important matters.
When it comes to evaluating this analysis, here are some factors that apply to the macro environment and comes under the DESTEP model. Take a look at the six factors:
- In order to analyze the Demographic variables, it is important to check the population, income, gender, origin and age. Greater understanding of this demographic factor is quite important from the point of view of an organization. Since, the products and services are made for the populace and so it is essential to be aware about the structure and size of market.
- In the last few years, there has been a big change in the Economy and so the company has to check the variables like: income, unemployment, disposable income, cyclicality, inflation and purchasing power.
- Market players have to research on the behavior of customers to analyze their lifestyles, level of education, Social norms, moral values, and religion. Since, there are a lot of customers who are members of various affiliations.
- In order to keep up with the changing world, the organizations have to respond quickly by coming up with the innovative products and new production procedures. They can analyze the success rate of the latest Technological advancements.
- Another important factor Ecological means different types of environmental regulations. Likewise, sustainable products, responsible social marketing concepts, climate, safety, garbage and much more.
- The Political factors can significantly impact the organization. This term entails Government regulations, rules, laws and policies. These all political measures may restrict the liberty of companies. Thus, firms have to keep them updated with the changes in law to avoid future problems.
With the information mentioned above about these several DESTEP factors; any organization may easily derive strategic benefits in the form of huge profits, expansion and growth.