What is pest analysis Political Economic Social Technological analysis?
The Pest Analysis or Political, Economic, Social and Technological is a framework to analyze the external impact on an organization. For example, when I say conduct a PEST analysis on a small barber shop in town. Then we can say that in terms of Politics, government actions or laws can have an impact on the business. For example, the govt may increase tax for barbers around the town. In terms of Economics, we can say that the Purchasing Power or Income level in the area, can influence your business in terms of revenue or cost. You just need to know that PEST is a tool for analysis. It’s called PEST, to simplify it and it’s less burdensome on the memory. It’s also important to know that in business, it’s not the only tool for analysis. Others include SWOT. These models can also evolve or phrased differently, the latest one is called SPELT. Hope this helps. (cheong@bgymail.gd.
