PEST Analysis (Political, Economic, Social & Technical Analysis) Essay

PEST Analysis (Political, Economic, Social & Technical Analysis)A PEST compendium (also sometimes called STEP, exalted or PESTLE analysis)looks at the external business environment. In fact, it would bebetter to call this kind of analysis a business environmental analysisbut the acronym PEST is easy to remember and so has stuck. PEST standsfor Political, Economic, Sociocultural and Technological.(Technological factors in this case, include ecological andenvironmental aspects - the second E in rivet and PESTLE, while the Lin PESTLE stands for legal). The analysis examines the impact of eachof these factors (and their interplay with each other) on thebusiness. The results can then be used to take wages ofopportunities and to make contingency plans for threats when preparingbusiness and strategic plans.You need to consider each PEST factor as they all play a part indetermining your overall business environment. Thus, when looking atpolitical factors you should consider the impact of any political orlegislative changes that could affect your business. If you are in operation(p) in more than one country then you will need to look at eachcountry in turn. Political factors include aspects such(prenominal) as laws onmaternity rights, data protection and even environmental policy thesethree examples alone have an on impact employment terms, schoolingaccess, product specification and business processes in manybusinesses globally.Obviously politicians dont operate in a vacuum...