WHAT IS A PEST Analysis Example?

What does a PEST analysis show?

PEST is an acronym for Political, Economic, Social and Technological.

This analysis is used to assess these four external factors in relation to your business situation.

Basically, a PEST analysis helps you determine how these factors will affect the performance and activities of your business in the long-term..

What is the difference between PEST and SWOT analysis?

PEST focuses on external environmental factors that affect the business, whereas SWOT analysis focuses on both internal and external factors. PEST explores the political and legal landscape by looking at employment laws, political issues, taxes and regulations that impact the business.

How do you identify a SWOT analysis?

Use the following 8 steps to conduct a SWOT analysis.Decide on the objective of your SWOT analysis. … Research your business, industry and market. … List your business’s strengths. … List your business’s weaknesses. … List potential opportunities for your business. … List potential threats to your business.More items…•

What are the four key components of a PEST analysis?

PEST Analysis (political, economic, social and technological) is a management method whereby an organization can assess major external factors that influence its operation in order to become more competitive in the market. As described by the acronym, those four areas are central to this model.

What is the benefit of pestle analysis?

Advantages and disadvantages of a PESTLE analysis It encourages the development of external and strategic thinking. It can enable an organisation to anticipate future business threats and take action to avoid or minimise their impact. It can enable an organisation to spot business opportunities and exploit them fully.

How do you do a PEST analysis?

How to Do a PEST Analysis in 5 Easy StepsStep 1: Understand PEST Factors Before Asking How to Do a PEST Analysis. Political Factors. Economic Factors. Social Factors. Technological factors.Step 2: Gather Relevant Data.Step 3: Identify Opportunities.Step 4: Identify Threats.Step 5: Take Action Once You Know How to Do a PEST Analysis.

WHAT IS A PEST analysis and why is it important?

A PEST analysis is a widely used strategic planning tool. It is used by many to identify the political, economic, social and technological factors that may have an effect on a project and its planning process. Sometimes it’s expanded to include legal and environmental factors and called a PESTLE analysis.

What is an example of a pest?

A pest is any organism that spreads disease, causes destruction or is otherwise a nuisance. Some examples of pests are mosquitoes, rodents, and weeds. … Examples of beneficial insects are dragonflies (which feed mainly on mosquitoes) and lady beetles (which eat aphids, scale insects, mites, and other insects).

How do you write a good SWOT analysis?

How to Do a SWOT AnalysisDetermine the objective. Decide on a key project or strategy to analyze and place it at the top of the page.Create a grid. Draw a large square and then divide it into four smaller squares.Label each box. … Add strengths and weaknesses. … Draw conclusions.

What are the examples of opportunities?

Opportunities refer to favorable external factors that could give an organization a competitive advantage. For example, if a country cuts tariffs, a car manufacturer can export its cars into a new market, increasing sales and market share. Threats refer to factors that have the potential to harm an organization.

What is SWOT analysis explain with example?

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. Strengths and weaknesses are internal to your company—things that you have some control over and can change. Examples include who is on your team, your patents and intellectual property, and your location.

Why a SWOT analysis is important?

SWOT Analysis is a simple but useful framework for analyzing your organization’s strengths, weaknesses, opportunities, and threats. It helps you to build on what you do well, to address what you’re lacking, to minimize risks, and to take the greatest possible advantage of chances for success.