This document summarizes an article about using PEST analysis as a tool in strategic management. It discusses how PEST analysis involves examining political, economic, social, and technological factors in the external business environment. The document also outlines other approaches to analyzing the external environment, such as identifying opportunities and threats, environmental forecasting, and considering global competition and uncertainty. It concludes that PEST analysis provides a framework for understanding market trends and helps position a business by assessing potential based on external conditions.

1. Environment & PEST Analysis:
An Approach to External Business
Environment
 Author -Abhishek Gupta- Administrative-cum-Accounts Officer &
Head of Office, Sardar Swaran Singh National Institute of Renewable
Energy (Ministry of New & Renewable Energy, Govt. of India)-
(Punjab)
 Journal Name-International Journal of Modern Social Sciences.
 Journal homepage:
www.ModernScientificPress.com/Journals/IJMSS.aspx
 Article history: Received 8 April 2013, Received in revised form 28
May, Accepted 29 May 2013, Published 30 May 2013.
ISSN: 2169-9917
STRATEGIC MANAGEMENT

2.  Environmental management-environmental planning, protection, monitoring,
assessment, research, education, conservation and sustainable use of resources.
 Environmental factors must be considered in the long-term goal of making
industrial development .
 Discussion of Environmental Analysis in the strategic management process of
organization.
 Strategic planning – feasibility –Impacts of factors.
 The strategic planning of business includes -functional subdivisions –
-Strategic Planning
-Human Resource Management
-Strategic Human Resource Planning
 In strategic planning, it can use different analytical methods and techniques that
one of them is PEST analysis. This paper introduces how to apply it in a new
manner.
STRATEGIC MANAGEMENT

3. INTRODUCTION
 External environment-
-components of all outside factors
-influences the impacts of operations of business.
-Consists ~Micro and Macro.
 There are various factors need to be considered under approaches of
external environment.
>Environment Analysis: Threats & Opportunities.
>Environmental Forecasting .
>PEST Analysis
>Industries: Global Competition.
>Environmental Uncertainty.
>The General Environment .

4. FACTORS
Opportunities and
Threats
Environmental
Forecasting
PEST Analysis
 Opportunities:
changes within the
market, customer
lifestyle, advances in
new technology, new
production method.
 Threats: supply cost
increases, new
technology, govt
regulations,
demographic alter,
changes in consumer
behavior.
 Scanning to detect
warning signals.
 Monitoring trends.
 Forecasting future
changes.
 Assessing the changes
for organizational
implications.
 Political factors -
political climate, &
industrial policies.
 Economical factors-
interest rates, exchange
rates, economic growth.
 Social factors -effects
of demographic
patterns, taste &
preferences.
 Technological
factors –upgrading
technology.

5. FACTORS
Global
competition
Environmental
Uncertainty
The General
Environmental
 Economic
performances.
 Global innovations.
 Global performances.
 R&D.
 Education trends.
 Global markets
 Threat to a strategic
manager.
 Scenario planning is
used to analyze the
environmental
uncertainty.
 It turns the planning
into learning process
rather than resulting
plans.
 Components-
Economic, Social,
Technological,
Political.
 The fluctuations of
local, national, world
economies.
 Underdeveloped
nations population,
low std of education,
lack of transportation.
 In developing nations
Increased GDP, low
wages.

6.  PEST Analysis – Tool - understanding market growth or
decline.
 It gives- a position, potential and direction -business.
 A PEST analysis is a business measurement tool.
 This research dealt –Importance of PEST in Strategic
Management.
 Journal briefs out on -Environmental analysis, global
environmental dimensions, environmental forecasting, risk
and uncertainty in business strategic management.
CONCLUSION

7. REFERENCE
 Frederic P Miller, Agnes F Vandome, John McBrewster, (2011). Pest Analysis, VDM
Publishing.
 Babette E. Bensoussan, Craig S. Fleisher, (2008). Analysis Without Paralysis:10 Tools to
Make Better Strategic Decisions, 1st edition, FT Press.
 Michel Robert, (2006). The New Strategic Thinking: Pure & Simple, McGraw-Hill.
 Kenichi Ohmae, (2002). The Mind of the Strategist, Tata McGraw-Hill Education.
 Kenichi Ohmae, Nicholas Brealey, (2000). The Invisible Continent: Four Strategic
Imperatives of the New Economy, 1st edition, HarperBusiness.
 Edmund B. Fitzgerald, (2000). Globalizing Customer Solutions: the Enlightened
Confluence of Technology, Innovation, Trade, and Investment, Greenwood Publishing
Group.
 Robert C. Megantz, (2002). Technology Management: Developing and Implementing
Effective Licensing Programs, 2nd Edition, Wiley.
 W. Teignmouth Shore, (2010). The Pest, BiblioBazaar, USA.
 Markus Slamanig, (2012). PEST Analysis Hungary: Country Evaluation and Selection of
Hungary, 1st edition, GRIN Verlag.

8. BY
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(1ST MCOM-2016)
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