PEST EXAMPLE. ROCE EXAMPLE. Return on capital employed (ROCE) is the ratio of net operating profit of a company to its capital employed.
It measures the profitability of a company by expressing its operating profit as a percentage of its capital employed. Capital employed is the sum of stockholders' equity and long-term finance. Alternatively, capital employed can be calculated as the difference between total assets and current liabilities. The formula to calculate return on capital employed is: Advantages of pest analysis. Barnsley College Moodle. Starbucks - PESTLE ANALYSIS. PEST Analysis Example. Political, economic, social and technological variables (the PEST factors) have great influence upon any business decision in a given business environment.
You cannot imagine the amount of hard work and research that is involved whenever a new product or commercial utility is launched. For that matter, any change in the business management and development strategy calls for minute scrutiny of the environment which would form the background for such change. It is with respect to this detailed dissection of the environment and the proper understanding of the verdict that is assimilated from such dissection that any decision pertaining to expansion, entry, exit or any other transition is reached.
PEST analysis is one tool of strategic management which scans the business and market environment to enable the firm to understand the surroundings in which it is operating or which it intends to enter. PEST analysis External influences business studies and business english. Before creating business plans or making decisions, it is important to 'scan' the external environment.
This can be achieved through a PEST analysis, i.e. an investigation of thePolitical,Economic,Social andTechnological influences on a business. In addition it is also important to be aware of the actions of your competitors.