Johnson Matthey is a leading global speciality chemicals company. Science and technology are embedded in everything that it does. To remain competitive in its fast-paced industries, Johnson Matthey uses a PEST analysis to monitor changes in its external environment that will have an impact on its operations. PEST analysis looks at political, economic, social and technological factors. The findings of this analysis are used to form future business strategies.
For Johnson Matthey, which operates globally, changes in laws and taxes in these countries can have a range of impacts on the company’s operations and strategies. Changes in the political arena influence many organisations other than Johnson Matthey. For example, in recent years economies across the world have looked to increase the use of renewable energy sources. China has offered tax rebates to manufacturers of solar power products in an attempt to boost the sector and also cut pollution levels. (BBC, 30th September 2013)