1. Maylene Wolford
PA233
October 23, 2013
Take Home Essay
PEST analysis is a simple and effective tool used in situation analysis to identify forces
that might affect an organization. Defining, understanding the tool and performing the
analysis, used in strategic management to business, government and society,
First how do we define PEST analysis? It is a political, economic, social and
technological factors in the external environment of an organization, which can affect its
activities and performance.These forces can create both opportunities and threats for an
organization.
Therefore, we would have to consider these factors:
Finding a solution to our current external factors affecting an organization.
Identifying external factors that may change in the future.
Exploit changes or defend threats to our competitors.
Next, how do we perform the analysis?
Gatherinformation about political, economic, social and technological changes
any other factor(s).
Identifying which of the PEST factors represent opportunities or threats.
Last but not least, the information is then evaluated. It is essential to identifywhich PEST
factors represent the opportunities or threats for an organization, and document it. This allows
focusing on the most crucial changes that might have an impact on the company.