Scribd
Upload
3 views14 pages

Module 2 Lesson2

Business management

Uploaded by

Laynard Lopez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
3 views14 pages

Module 2 Lesson2

Business management

Uploaded by

Laynard Lopez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 14

MODULE 2

By: Engr. Charo G. Almonte


Module 2 Lesson 2
SIZING UP THE
MARKETPLACE USING PEST
ANALYSIS
PEST ANALYSIS
DEFINITION
 a measurement tool which is used to
assess markets for a particular
product or a business at a given time
frame
 a management method whereby an
organization can assess major
external factors that influence its
operation in order to become more
competitive in the marke
PEST DESCRIPTION:
 helps organizations take better
business decisions and improve
efficiency by studying various factors
which might influence a business
such as political, economic, social,
and technology
 helps in making strategic business
decisions, planning marketing
activities, product development and
research
 PEST stands for
P - Political Environment
 includes government regulations or
any defined rules for that particular
industry or business
 involves study of tax policy which
includes exemptions if any,
employment laws, environment laws,
etc
E - Economic,
S - Social, and
T- Technological factors
 PEST stands for
E – Economic factors
 gauges the economic environment by
studying factors in the macro
economy such as interest rates,
economic growth, exchange rate as
well as inflation rate.
 also help in accessing the demand,
costing of the product, expansion, and
growth.
S - Social, and
T- Technological factors
 PEST stands for
S – Social factor
 includes the study of
demographics, as well as the
target customers.
 help in gauging the potential
size of the market.
 includes study of population
growth, age distribution, career
attitude, etc
 PEST stands for
T- Technological factors
 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
WHY DO A PEST
ANALYSIS?
 Helps to evaluate how your strategy fits
into the broader environment and
encourages strategic thinking.
 Provides an overview of all the crucial
external influences on the organization
 Supports more decisive and
knowledgeable decision making.
 Assists planning, marketing,
organizational change initiatives,
business and product development,
project management, and research
papers
PEST ANALYSIS TEMPLATE
APPLICATIONS OF PEST ANALYSIS
 assist an organization in recognizing and thereby
capitalizing on opportunities offered by existing
conditions in the business environment
 used for identifying current or possible future
challenges, allowing for effective planning of how
to best manage these challenges
 applied in assessing the in-house structure of an
organization in order to identify strengths and
weaknesses in its internal politics, economic
outlook, social climate, and technology base
 can be used in conjunction with other forms of
strategic business analysis, such as the SWOT
model, for an even more comprehensive result
BENEFITS OF A PEST
ANALYSIS
 A greater understanding of your
company
 More effective long-term strategic
planning
 Heightened attention to potential
threats and dangers
 Insight for valuable business
opportunities
LIMITATIONS
 Solarju, a digital marketer at
Housingman India, noted a few
disadvantages. "Even though [you]
analyze all the factors, there is a chance
that they might change within an hour
or day due to its dynamic nature," said
Solarju. "Some factors are based on
assumptions, so they may not be
accurate. As the data collect[ed] is
huge, one needs to carefully utilize it in
a better way, and as it is from external
sources, one is not sure about the
accuracy."

You might also like