http://www.ehow.com/about_5085518_reason-use-swot-pestle-analysis.html PEST Analysis
The PEST analysis is a framework that is used during strategic analysis to scan the external macro-environment in which a firm operates in. PEST is an acronym for the following factors Political
PEST factors play an important role in the value creation opportunities of a strategy However, they are usually outside the control of the corporation and must normally be considered as either threats or opportunities. Specifically the PEST is a useful tool for understanding risks associated with market growth or decline, and as such the position, potential and direction for a business or organization. The PEST method is at times supplemented by the legal and environmental factors.
The SWOT analysis is a tool used in strategy formulation that can aid in identifying the Strengths, Weaknesses, Opportunities and Threats of a particular company. Strengths and weaknesses are internal factors that create or destroy value. They can be measured using internal assessments or external benchmarking. Strengths and weaknesses are within the control of the organsiation and should either be harnessed or eliminated. For example, in 2009 Honda started the commercial production for the first time of zero-emission hydrogen fuel-cell powered vehicle as one of it’s many steps to help slow down greenhouse gases. Honda’s strength in extensive R&D made the vehicle a reality. Opportunities and threats are external factors that have the potential to create or...