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PEST Analysis

PEST analysis is a tool used to evaluate the political, economic, social, and technological factors affecting a market. It assesses these macroenvironmental factors to help organizations make better business decisions. The P (political) factor examines government regulations; E (economic) analyzes interest rates, growth, and costs; S (social) considers demographics and customers; and T (technological) focuses on technological adoption rates, automation, and innovation. Understanding these external influences through PEST analysis can guide strategic planning.

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Tarek El Halabi
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10 views

PEST Analysis

PEST analysis is a tool used to evaluate the political, economic, social, and technological factors affecting a market. It assesses these macroenvironmental factors to help organizations make better business decisions. The P (political) factor examines government regulations; E (economic) analyzes interest rates, growth, and costs; S (social) considers demographics and customers; and T (technological) focuses on technological adoption rates, automation, and innovation. Understanding these external influences through PEST analysis can guide strategic planning.

Uploaded by

Tarek El Halabi
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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PEST Analysis

Grade 12
Students will be able to:
• Define Pest Analysis
• Identify the factors in a PEST analysis
What is PEST Analysis?
PEST Analysis
• PEST Analysis is a measurement tool which
is used to assess markets for a particular POLITICAL
product or a business at a given time frame.
PEST stands for Political, Economic, Social,
and Technological factors. Once these
factors are analyzed organizations can take ECONOMIC
better business decisions.

SOCIAL

TECHNOLOGY
Political Factor
Political Factors
• In PEST analysis, 'P' stands for Political
environment. It includes government
regulations or any defined rules for that
particular industry or business.
• It also involves study of tax policy which
includes exemptions if any, employment
laws, environment laws, etc.
Economics Factors
•PEST analysis stands for economic factors. It
gauges the economic environment by studying
factors in the macro economy such as interest
rates, economic growth, exchange rate as well
as inflation rate. These factors also help in
accessing the demand, costing of the product,
expansion, and growth.
Social Factors

• Social factors that form the macro


environment of the organisation. It
includes the study of demographics,
as well as the target customers. These
factors help in gauging the potential
size of the market. It includes study
of population growth, age
distribution, career attitude, etc.
Technological factors
• PEST analysis stands for technology. As we
all know, technology changes very rapidly,
and consumers are hungry to adopt new
technology. It involves understanding factors
which are related to technological
advancements, rate at which technology gets
obsolete (Example: the operating system in
mobile phones), automation, and innovation.
• https://www.youtube.com/watch?v=h_V59k
doCLI

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