If you're a student of marketing and business studies then you must have come across the term 'PEST Analysis'. Here are a couple of PEST Analysis examples to clarify the concept further.
You cannot imagine the amount of hard work and research that is involved whenever a new product or commercial utility is launched. For that matter, any change in the business management and development strategy calls for minute scrutiny of the environment which would form the background for such change. It is with respect to this detailed dissection of the environment and the proper understanding of the verdict that is assimilated from such dissection that any decision pertaining to expansion, entry, exit or any other transition is reached. PEST analysis is one tool of strategic management which scans the business and market environment to enable the firm to understand the surroundings in which it is operating or which it intends to enter. Before proceeding towards the PEST analysis example, let's get to know this strategic management tool better.
PEST Analysis - An Overview
PEST is an acronym for Political, Economic, Social, Technological - the categories into which a compound business environment is broken up for analytical ease. It is a strategic planning tool for gaging the various factors in a potential business environment to estimate its suitability for the enterprise at hand. Therefore, let's take a look at all these building blocks of a business environment separately.
Political environment refers to all those things pertaining to and perpetrated by the government that affect the economy and business scenario in general. Government regulations and policies that impact the business environment the most may include trade and labor laws, tax policies, environmental laws and regulations, trade restrictions, commercial tariffs, infrastructure and development policies, etc. The degree of political stability also has a huge impact upon...