Pest Analysis Construction

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6.0 PEST Analysis Although easy to remember and easily forgotten by firms in developing a long-term strategy, a “PEST analysis” is an acronym for analyzing the external environment (political, economic, sociological/demographic, and technological) and setting the stage for strategic planning. Also known as “environmental scanning,” the PEST analysis reviews the environment of a market—whether emerging or existing—and provides a snapshot of the external situation that may impact an industry or the firms within that industry. 6.1Political & Legal forces Legal forces in real estate industry: The legal and regulatory framework concerning the house and estate development industry includes laws such as The Parish Council Building Act (1908), Natural…show more content…
But surprisingly it is found that there is a paradox of economic theory. Through the price is increasing steadily, it does not have negative impact on sales, but instead research have shown that demand, construction activity, sales and profit margins have demonstrate signs of steady increase and in some cases holding firm. So even though there is an increase in construction materials and price of individual units it has not significantly affected the real estate companies in a negative way. Impact of changes in the foreign currency exchanges: The basic supplies that are needed for real estate developments are cement and steel. The raw material for producing cement and steel are usually imported, or even the cement and steel itself are sometimes imported. So the instability in foreign currency exchange definitely has an impacted on the price of these materials. But as was stated earlier, this only affects the company when purchasing these materials, but really doesn’t have a great impact as it relates to revenue generated and sales volumes. Our country economic & income…show more content…
When compared to other countries, Jamaica’s real estate industry is lagging behind in the implementation of these advance and new technologies. These advance and new technologies have a lot of benefits. For example it reduces risk in developments. In that, house builders are seeing a shift to mixed-use sites with fewer family homes and more flats, so multiplying the risk factor inherent in investing in building land. Mindful of high-profile project delivery delays, many commercial or public sector clients have introduced financial penalty clauses in case deadlines are missed. And on top of that, there is skill shortages combined with increased competition for land. Yet often, profits are eaten away by practical issues - delays in receiving drawings, use of outdated data, inaccuracies caused by human

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