“We look at tariffs, trade deals as they are developed not only by the economics or business side but what political relationships influence those decisions.”Ī PEST analysis examines the following political factors:
#THE MEANING OF PESTER PROFESSIONAL#
“We see this currently in the U.S., particularly in the area of international business,” said Donna Lubrano, a lecturer in the Northeastern University College of Professional Studies. The “P” in the analysis refers to the political factors that help or hinder a business. Elements of a PEST analysisĪ PEST analysis covers four elements: political, economic, social and technological factors. The purpose of a PEST analysis is to help a company’s management team better understand the market they’re operating in now and how they can prepare for potential shifts (for example, regulatory changes). What is a PEST analysis?Ī PEST analysis is an assessment of the political, economic, social and technological factors that could affect a business now and in the future. Many companies use a political, economic, social and technological (PEST) analysis to get a better assessment of their business environment and to understand external threats and opportunities. But many factors are completely out of your control, and without detailed knowledge of those variables, it’s a lot harder to run a successful business. You can decide which products and services you offer, how much you charge, who supplies you and whom you employ. In business, there’s only so much you can control. This article is for business owners and executives who want to understand the external opportunities and threats facing their business.A PEST analysis lets you see how your business is affected by current and future political, economic, social and technological factors.Researching trends and possibilities that may affect your business allows you to plan and act strategically.For your business to be successful, it is important to understand and adapt to what’s around you. Your business is just one small cog in the wider economy.
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