How PEST analysis compliments SWOT analysis

How PEST Analysis Compliment SWOT Analysis SWOT AnalysisHow PEST AnalysisCompliment SWOT Analysis

How PEST Analysis Compliment SWOT Analysis SWOT AnalysisStrategically analyze your business. Find out what your strengths,weaknesses, opportunities and threats are. Increase your strengths,minimize your weaknesses, exploit your opportunities and avoid thethreats. Click herePEST Analysis is a short form for "Political, Economic, Social, andTechnological analysis" and it describes a framework of macro-environmental factors used in the environmental strategies. PESTAnalysis would be able to complement the SWOT Analysis in aStrategic Planning Process.Below are my interpretation of the four factors of PEST Analysis:-1) PoliticalIt deal with governmental policies which has a great influence to theeconomics in a country. It is a macro aspect of an analyse which keychanges to the policies making. The policies have great influence tothe business sectors and confidence of investors.Example: Reduction in import duty of floor tiles for ceramic industrycan have its fair share of influence to the industry. It is viewed aspositive to the local ceramic manufacturer as imported tiles are more

How PEST Analysis Compliment SWOT Analysis SWOT Analysiscostly. However, it is negative impact to an importers such as tradersof such a product2) EconomicThe economic is an area in a macro economic environment. It canaffect the business outlook and its competitiveness. Some key factorsof macro economic are economic growth, exchange rate, interest rate,etc, All these factors have an effect to the profitability and cost ofdoing business in that business sector..Example: Unstable bank interest rate affect the stability to the cost ofa business and it can viewed as a Opportunities and / or Threats to dobusiness.

How PEST Analysis Compliment SWOT Analysis SWOT Analysis3) SocialSocial factors reflects the cultural aspects of a population in thecountry. It affect the workforce management which influence theproductivity and cost of a business.Example: Job preference from heavy to light industry changes the skilldeveloped by any company4) TechnologicalTechnological factors is visible and can be validated easily as it ismore tangible. It can be in a form of incentives by the governmentsuch as such as Research & Development incentives, automationreinvestment, high capital setup.Example: Changes of consumer preference toward higher end productwhich can be produced with higher technology.In conclusion, PEST Analysis can be used to explore Opportunities andThreats and it can channel to use as the external factors of a SWOTAnalysis template.

How PEST Analysis Compliment SWOT Analysis SWOT AnalysisDr. LM Foong, PhDHe writes and publishes TQM articles, Strategic Planning, SWOT Analysis. You can readmore Business SWOT Analysis articles hereArticle Source:http://EzineArticles.com/?expert=Dr._LM_Foong

How PEST analysis compliments SWOT analysis

by Business Plan on Apr 26, 2012

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