Russia Pest Analysis
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The PEST analysis in Russia:
Political:
In 1993, after the crisis in the constitution of Russia and with the support from most part of the population, the 12th Dec 1993, Russia was officially became the federation of Russia with semi presidential republic. They keep going with the same regime until today so it is very important to have a constant regime and policy to attract more investors. It is also important to have the policies which provide more benefit and advantages for people who want to contribute or get into the business. Even though Russia is a federation but there is still the involvement between the main government and the region or local government. The political side takes the main role in order to run the business of the whole country. It is the main feature to keep the stability of the social as well as the economic.
Economic:
The economics of Russia depends mainly on the natural resources. There are two major resources are oil and gas. Russia is the country with the advantage of natural resources. The problem of Russias economic is that it is too dependent on the price of crude oil. In order to cope with this situation, the government needs to have a conventional budget to deal with the productivity of the labor. They also need to pay more attention on the education of the new generation. The change of the political regime and the economic system lead to the fact that they need more people with open minded, flexible and willing to learn and be active in the economic.
Social:
From 1990, with the changes in the regime of politic, the society stepped forward. They convert from a society with autocratic structure to a society with democratic character. This change enlarges the gap between the poor and the rich people in the society. The most obvious evident of capitalism in the society is that people started to spend in a wasted scale with expensive cars, clothes and outfit that a normal Russian cannot afford. The development of entertainment and social activities contribute a main part in the improvement of Russians living standard.
Technology:
Russia is a country which is rich in science tradition. Even they have a good base and remarkable success in technology but somehow it does not contribute much to the revenue of the country. They have the economic which mainly depends on exporting oil and other natural resources. The development and success of the economic is totally depending on the price of the product in the market. In order to be more active in the economic, it is the must for this country to focus a product where they are really in advanced compare to other countries. The success of this will push the expansion of trade and industry. It opens a new opportunities to grow in economic, which make