PEST or External Environment Analysis Assignment Help

PEST or External Environment Analysis Assignment Help
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PEST or External Environment Analysis Assignment Help

A PEST analysis is identified as an organized and structured framework needed for business for analyzing and monitoring the macro marketing surrounding. The outcome of the analysis is further utilized for discovering the probable threats as well as weaknesses that are utilized in the SWOT analysis. Actually, in simple terms, it is regarded as an examination of the external macro situation. PEST analysis is habitually replaced in the form of PESTLE analysis that is a similar term. When you are conscious of forces and patterns prompting your external environment, the success and sustainability of your non-for-profit organization will be realized. There are noteworthy patterns and forces in your external environment. There are countless students who study PEST or external environment analysis and they are habitually given assignments on this topic.

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The Chief Targets of PEST Analysis:

The important targets for conducting PEST analysis are as follows:

  • To discover the existing external factors that affect the organization
  • To discover the external factors which can bring a transformation in the future
  • To use or exploit the transformations in an improved way for extracting prospects from them.
  • For the purpose of business and marketing development assessment
  • For making decisions based on the discoveries
  • To access the probability of one new market

Pest analysis sometimes gets rearranged in the form of STEP analysis although the meaning continues to remain the same. It is used for identifying the market potential which shows the growth or decline, business possibility etc. This serves as one business measurement tool for an organization. Actually, the basic principle remains to recognize vital factors that can influence an organization from the uncontrollable and wider external marketing environment. Most of the times, external factors are beyond the control of the company that turns out to be riskier for the business, although it has often been observed that altering marketing environment brings new prospects and development for the organization.

The Factors that Influence PEST Analysis

In the word PEST, P stands for political, E is for economic, S for social, and T symbolizes technical. These factors do contribute to the development of a company. Below are mentioned these factors in detailed version:

Political factors – These factors tell how much government intervention does influence the business economy and these factors include foreign trade, government policy, environmental law, political stability in foreign markets, trade policy, labour law, tax policy, tariffs, and restrictions.

Economic factors – These factors affect the business in many noteworthy ways and tell about the interest rates, exchange rates, economic growth, employment level, inflation rates, monetary policies and prices of raw materials that include petrol, life standards, distribution of wealth, steel and energy etc.

Social factors – These factors include the cultural as well as the demographic aspects which can determine the success of a business in the existing market.

Technological factors – These factors define the processes of technical issues that can influence an organization, service or product into the marketplace.

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