PEST stands for Political Factors, Economic Factors, Socio-cultural Factors and Technological Factors. These are very important factors that are needed to be considered in an organization. In fact, analyzing the external environment using these factors should be continuous in order to make sure all the aspects of planning are the in right direction.
The process is called PEST analysis. PEST analysis is a critical analysis of the external factors of the organization that is essential to strategic planning.
Political factors include policies that affect and regulate the business, and the views of the government on marketing ethics. Economic Factors include the latest interest rates. This also involves long-term prospects for the economy’s Gross Domestic Product per capita and the levels of inflation rate. Socio-cultural factors consist of language, religion and gender that might influence the business. Technological, is of course, the effectiveness of technology when used.
This study is interested in analyzing how these factors can affect a certain business. This study would like to explore more on the importance and the effectiveness of PEST analysis to a company by research through printed materials and online articles regarding the topic. This study will also conduct interviews and observations of selected companies that regularly apply PEST analysis in their marketing plans.
This study aims to present the ways to conduct PEST analysis and its significance to strategic planning.
This study will be beneficial to businesspersons in general.
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