Koncept’s PEST analysis provides a framework of macro-environmental factors to scan the external environment.
It serves as a basic analytical tool for understanding market growth or decline.
The framework evaluates the impact of regulatory, economic, social and technological factors on the business environment.
It analyzes how the external environment may create opportunities or threats for an organization.
An analysis of the following four components of the macro-environment can help you to think how your business should respond to these external influences.? Political Analysis – Political stability, trade regulations, tax policies, industrial safety and environmental regulations, employment laws, IP rights? Economic Analysis – Economic growth, inflation rate, interest rates, exchange rates, labor costs, government expenditure, consumer spending? Social Analysis – Demographics, consumer behavior, leisure interests, income distribution, living standards, health consciousness, fashion & lifestyle changes? Technological Analysis – Technological developments, new inventions, automation, information technologyKoncept Analytics’ PEST Analysis gives a logical structure, providing clear presentation for further discussion and decision-making.
PEST analysis is a useful strategic tool for formulating business strategies, marketing planning, business and product development.
It ensures that the organization’s performance is aligned positively with the external forces of change that could impact business environment.