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Self-Reference Criterion's Influence on PEST Analysis

Executives of an American corporation intend to enter the Indian market. How might the self-reference criterion influence the American executives' PEST analysis of India? What can the American executives do to avoid the mistake of self-reference criterion?

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Self-Reference Criterion and PEST Analysis

The case at hand is about an American Corporation that intends to enter the Indian market, a market which expectedly would be different from the US market in certain aspects. In addition to its goal for expansion, the company may have been considering the planned strategy as a way to maintain its competitive position.

The PEST analysis can serve as a tool of the management to have a clear picture of the planned market for expansion as far as political, economic, social, and technological factors are concerned.

As noted in an online source, (http://www.quickmba.com/strategy/pest/) political factors include political stability, tax policy, employment laws, environmental regulations, trade restrictions, and tariffs. Economic factors consist of economic growth, interest rates, exchange rates, and inflation rate. These are relevant because they affect the purchasing power of the buyers and the firm's cost of capital. Included under social factors are demographic and cultural aspects of the external macro environment. These factors affect customer needs and the size of potential markets. Some social factors include health ...

Solution Summary

Self-reference criterion's influence on PEST analysis is examined. Self-reference criterion are determined.

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