Sony PEST Analysis PEST analysis is another marketing tool. Parasitic analysis examines changes in the market caused by political, economic, social and technological factors. Changes in political factors involve one party exercising control over another. For example, the increase in private health care and privatizations under the Conservative government. Changes related to economic factors include changes such as a recession creating activity at the lower ends of product price ranges. For example, rising interest rates depress businesses, causing layoffs and lower spending levels. Changes related to social factors include changing lifestyles and attitudes. The increase in the number of women leaving work. Technological factors involve changes as the public perceives it, which creates opportunities for new products, product improvement, and marketing techniques such as the Internet and e-commerce. Political factors within Sony Political factors can have a direct impact. impact on the operation of Sony. Decisions made by government affect businesses on a daily basis and can take the form of policies or laws. Political factors have a huge influence on business regulation. Political factors affecting Sony may include government laws such as the introduction of the minimum wage which affect Sony employees because the hourly rate increases every year, and every time the minimum wage increases Sony will have to pay taxes. This means no profit for Sony unless they raise the prices of the items. The introduction of the euro facilitates trade, the stock market price could fall in the United Kingdom, which would facilitate Sony's expansion. Protectionist policy imposes import barriers in a country to protect domestic producers, which can affect imports of Sony products in a positive light. Economic Factors within Sony Economic factors affecting Sony may include declining interest rates which are low. Interest overall decreased each year drastically, from 1998 at 6.25% until 2001 at 4%, leaving the average rate at 5.4%. When Sony has to pay interest on loans, lower interest rates reduce interest costs for Sony. Alternatively, a rise in interest rates will increase interest costs for the company. On the contrary, high interest rates can make the pound sterling an attractive currency... middle of paper ... in the department, the shortage of computer scientists can cause inconsistency when a computer breaks down. Mechanization and automation - The production, storage and marketing of Sony products may be affected by the increased use of new technologies such as connecting televisions to DVDs and VCRs, downloading, purchasing illegal products. Process ? the need to reduce costs, speed up production and be competitive is a driving factor for Sony. Invention and innovation? The need to create new technologies and productions within Sony can be a major driver for the company's research and development department. A company like Sony that has achieved a patented breakthrough provides a major and lasting competitive advantage over other competitors. For example, Sony spends millions on updates and regularly adding new features to its products. Internet? The use of the Internet for business-to-business transactions, such as..