External Trends – CREST, PEST, PESTEL

1. Identify one organization operating in Canada.

Air Canada, Canada’s national airline company. 

2. List the external trends in each category of CREST/PEST/PESTEL.

CREST: Competition, regulation and laws, economy, social, technology.

PEST: Political, economic, social, technological.

PESTEL: Political, economic, social, technological, environmental, legal.

3. Explain how the trends could impact this organization and what that organization would need to do as a result.

CREST, PEST and PESTEL are all macroenvironmental factors that organizations usually do not have control over as these factors have generally one-way effect on the organizations.

For instance, Air Canada’s sales and reputation are negatively affected if they lag behind technological trends. Or, if interest rates increase in Canada, then Air Canada might like to increase ticket prices. Economic growth, inflation rate, and unemployment rate of Canada directly or indirectly affect the company too as it affects the purchasing power of the consumers. If purchasing power decreases, then Air Canada might need to decrease their ticket prices too. Also, government policies, political stability or instability, tax policies of the country directly impact Air Canada and forces it to keep adjust itself to new regulations and policies.

Air Canada needs to understand and be able to adjust the trends and changes occurred within these factors. If it is not able to follow the trends in any of these dimensions within the greater societal environment, then it may lose its customers, fell from favor, lose its popularity, and lose sales.