PEST Analysis
PEST analysis is a method that is used to decide the suitability of an environment for a particular purpose. In
most case, PEST analysis is made use of in strategic business decision making when a company is looking
forward to expanding its business prospects to an external and foreign market. In this perspective, there are
many aspects of the target environment that are under sc
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PEST
Analysis
PEST analysis is a method that is used to decide the suitability of an environment for a particular purpose. In
most case, PEST analysis is made use of in strategic business decision making when a company is looking
forward to expanding its business prospects to an external and foreign market. In this perspective, there are
many aspects of the target environment that are under scrutiny to illustrate the suitability or lack thereof of
the target environment (Sammu Bonnici and Galea, 2015). PEST analysis looks at the political, economic,
social and technological. These are the factors that control the external macro-environment, which are out of
the control of the firm or of the business entity.
The undertaking of the PEST analysis is important and crucial in the undertaking of any significant activity.
However, in the undertaking of an assignment that does not have a huge geographical scope of operation and
is limited to a given environment, it is key that the PEST analysis looks at specific features that may be
important to the task at hand. The elaboration of the existing political, economic, social and technological
factors and their impact on the task at hand would be a significant revelation to the group involved in
carrying out the provided task (Sammu Bonnici and Galea, 2015).
The political analysis looks at some of the significant factors that affect the political state of the chosen
environment. The state of political stability or instability is depicted by different things in the environment.
In regard to the purpose of the task at hand, whether it be academic or business related, the following
political factors will be significant to influencing the suitability of the chosen environment. The political
analysis will take a look at the existing regulation, anti-trust laws, taxing rates, wage legislation, intellectual
property protection and the legal framework for contract enforcement (Sammu Bonnici and Galea, 2015)..
All of these provide a look at the suitability of a given environment with regard to its impact on the
operations of the activity that is to be undertaken.
The economic analysis of the chosen environment takes a look at some of the things that exist in the
environment that affect the overall economic outlook. These aspects of the environment may take different
paths in determining the overall economic outlook. These may include the labour costs, unemployment rate,
interest rates, inflation rates, and government intervention in the free market, the level of skill in the labour
workforce and the economic growth rate of the chosen environment (Sammu Bonnici and Galea, 2015). As
such, some of these aspects may influence an activity that takes on a larger scope such as a nationwide scope
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