Access over 20 million homework & study documents

Business Environment Pest Analysis

Content type
User Generated
Subject
Business
Type
Homework
Rating
Showing Page:
1/14
Running head: PEST ANALYSIS 1
PEST Analysis
Name
Institution

Sign up to view the full document!

lock_open Sign Up
Showing Page:
2/14
PEST ANALYSIS 2
PEST Analysis
Introduction
PEST analysis in different industries is carried out to understand how different factors
affect the business community. It involves analysis of the political, social, economic and
technological factors that affect businesses in a given environment. PEST analysis is important
for several reasons. First, it assists companies or businesses to spot opportunities or identify
specific threats present in any business setting (Jurevicius, 2013). Secondly, it also reveals the
change in direction the business is taking. This helps in shaping the direction the business takes.
Thirdly, PEST analysis ensures that the company management understands all the likely reasons
as to why some businesses are more likely to fail (Jurevicius, 2013). Some reasons are beyond
control while others can be controlled by the company. Lastly, PEST analysis helps
organizations break free from different markets especially when entering new markets, country
or regions (Mind Tools, 2016). It breaks free from the different assumptions that had already
been established in the market (Jurevicius, 2013).
Political factors that affect the business processes majorly deal with legal issues as well
as governmental regulations. Some of these factors include trade regulations, tax guidelines,
political stability, social environment policy, property law enforcement, and issues to do with
copyright rights (Mind Tools, 2016). Economic issues analyze external and internal factors that
commonly affect the success of a given company. Some of the economic factors include
inflation, interest rate, economic growth, unemployment policies as well as anticipated shifts in
costs of different commodities in the market (Mind Tools, 2016). Social issues largely deal with
cultural and demographic aspects. Social needs assist different companies to understand the
needs of their consumers. The common social factors to be analyzed include educational

Sign up to view the full document!

lock_open Sign Up
Showing Page:
3/14

Sign up to view the full document!

lock_open Sign Up
End of Preview - Want to read all 14 pages?
Access Now
Unformatted Attachment Preview
Running head: PEST ANALYSIS 1 PEST Analysis Name Institution PEST ANALYSIS 2 PEST Analysis Introduction PEST analysis in different industries is carried out to understand how different factors affect the business community. It involves analysis of the political, social, economic and technological factors that affect businesses in a given environment. PEST analysis is important for several reasons. First, it assists companies or businesses to spot opportunities or identify specific threats present in any business setting (Jurevicius, 2013). Secondly, it also reveals the change in direction the business is taking. This helps in shaping the direction the business takes. Thirdly, PEST analysis ensures that the company management understands all the likely reasons as to why some businesses are more likely to fail (Jurevicius, 2013). Some reasons are beyond control while others can be controlled by the company. Lastly, PEST analysis helps organizations break free from different markets especially when entering new markets, country or regions (Mind Tools, 2016). It breaks free from the different assumptions that had already been established in the market (Jurevicius, 2013). Political factors that affect the business processes majorly deal with legal issues as well as governmental regulations. Some of these factors include trade regulations, tax guidelines, political stability, social environment policy, property law enforcement, and issues to do with copyright rights (Mind Too ...
Purchase document to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Anonymous
Really useful study material!

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Similar Documents