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Red Indígena de Turismo de México A.C. (RITA), Teaching Case
Unformatted Document Text:  Appendix A. METHODOLOGY FOR A PEST ANALYSIS This study analyzes RITA’s different contexts or Political, Economic, Social and Technological environment, evaluating the following concepts on each of them:I= ImpactP= ProbabilityT= TimeV= Value  APPRAISAL OF THE LEGAL AND POLITICAL ENVIRONMENT I P T V Change of government teams in the various political institutions 10 1 .50 11.5 Changes in legislation and in security matters 10 0 .50 10.5 Changes in the environmental legislation 10 .30 .20 10.5 Changes in the system of sectoral assistance or investment incentives 5 .40 .50 5.9 Changes in market regulation (interventions, privatizations) 0 0 0 0 Changes in the legal structure and framework 15 1 .50 16.5 Total 50 2.7 2.2 54.9  APPRAISAL OF THE ECONOMIC SETTING I P T V Low dependence on the dollar 15 1 .50 16.5 Evolution of credit availability 5 .2 .50 5.7 Impact of on-line commerce 10 .50 .50 11 Evolution of the inflation rate (or its differential) 10 .50 .50 11 Growth of the cultural tourism sector in Mexico 15 1 .50 16.5 Alliances with other countries (Americas and Europe) 15 1 .50 16.5 Tax and social security legislation 5 .40 .50 5.9 Assistance programs for SMEs and Social Entrepreneurs 5 .40 .50 5.9 Total 80 5.0 4.0 196.2  APPRAISAL OF THE SOCIAL AND DEMOGRAPHIC SETTING I P T V Changes in the structure of activities of this sector 5 .2 .5 5.7 Growing concern for cultural dissemination 15 .4 .3 15.7 Growing geographical mobility of the population 10 .4 .3 10.7 Growing concern for the environment 15 1.0 .5 16.5 Changes in work habits 10 .4 .3 10.7 E-commerce (on-line purchases) 10 .5 .5 11 Need for a quiet natural setting for vacations 10 .5 .5 11 Total 75 3.4 2.9 81.3  APPRAISAL OF TECHNOLOGICAL CHANGE I P T V On products and services 10 .4 .3 10.7 On execution procedures 10 .4 .3 10.7 On distribution and marketing processes 15 .6 .7 16.3 On necessary equipment and premises 10 .4 .3 10.7 On the quality of services provided 10 .4 .3 10.7 On employees 15 .6 .7 16.3 On the use and utilization of client databases 15 .6 .7 16.3 Total 85 3.4 3.3 91.7 • Regarding the Legal Political appraisal we can see that the main obstacle that RITA faces is the lack of a legal structure governing this type of tourist services. 24

Authors: Elías Lian, Laila. and Axtle Ortiz, Miguel.
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Appendix A. METHODOLOGY FOR A PEST ANALYSIS 
This   study   analyzes  RITA’s   different   contexts   or   Political,   Economic,   Social   and   Technological   environment, 
evaluating the following concepts on each of them:
I= Impact
P= Probability
T= Time
V= Value 
APPRAISAL OF THE LEGAL AND POLITICAL ENVIRONMENT
I
P
T
V
Change of government teams in the various political institutions
10
1
.50 11.5
Changes in legislation and in security matters 
10
0
.50 10.5
Changes in the environmental legislation
10
.30 .20 10.5
Changes in the system of sectoral assistance or investment incentives
5
.40 .50 5.9
Changes in market regulation (interventions, privatizations)
0
0
0
0
Changes in the legal structure and framework 
15
1
.50 16.5
Total
50
2.7 2.2 54.9
APPRAISAL OF THE ECONOMIC SETTING
I
P
T
V
Low dependence on the dollar 
15
1
.50 16.5
Evolution of credit availability
5
.2
.50 5.7
Impact of on-line commerce 
10
.50 .50 11
Evolution of the inflation rate (or its differential)
10
.50 .50 11
Growth of the cultural tourism sector in Mexico
15
1
.50 16.5
Alliances with other countries (Americas and Europe)
15
1
.50 16.5
Tax and social security legislation
5
.40 .50 5.9
Assistance programs for SMEs and Social Entrepreneurs
5
.40 .50 5.9
Total
80
5.0 4.0 196.2
APPRAISAL OF THE SOCIAL AND DEMOGRAPHIC SETTING
I
P
T
V
Changes in the structure of activities of this sector 
5
.2
.5
5.7
Growing concern for cultural dissemination 
15
.4
.3
15.7
Growing geographical mobility of the population
10
.4
.3
10.7
Growing concern for the environment 
15
1.0 .5
16.5
Changes in work habits
10
.4
.3
10.7
E-commerce (on-line purchases)
10
.5
.5
11
Need for a quiet natural setting for vacations
10
.5
.5
11
Total
75
3.4 2.9 81.3
APPRAISAL OF TECHNOLOGICAL CHANGE
I
P
T
V
On products and services
10
.4
.3
10.7
On execution procedures
10
.4
.3
10.7
On distribution and marketing processes
15
.6
.7
16.3
On necessary equipment and premises
10
.4
.3
10.7
On the quality of services provided
10
.4
.3
10.7
On employees
15
.6
.7
16.3
On the use and utilization of client databases
15
.6
.7
16.3
Total
85
3.4 3.3 91.7
Regarding the Legal Political appraisal we can see that the main obstacle that RITA faces is the lack of a legal 
structure governing this type of tourist services.
24


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