How businesses use the PEST analysis

Author: Eddie | Subject: Business analysis

How businesses use the PEST analysis image
Article excerpt: A PEST analysis is conducted by a business for the purpose of analysing and examining forces within the external environment where a business operates. The word PEST in this context is an acronym for Political, Economic, Socio-cultural and Technological, each of which represents a specific area of the external business environment where a firm is conducting its operations and where changes that occur are beyond the firm’s control. Applying the PEST analysis is for marketing purposes, and it is the events and issues occurring within these areas of the external market place that the marketer will need take into account when developing their strategic marketing plan for the brand and its product/service.