Analyzing key factors that impact your business is crucial to your strategic planning for the external market. PEST Analysis is incredibly useful for you and your team in external Political, Economic, Social, and Technological outward characteristics.
Political - What politically motivated factors impact your organization? During analysis, consider governmental policy, foreign trade policy, labor, and environmental regulations that can disrupt your business.
Economic - Think about your business’ pricing, cost, and revenue stream. What external economic factors affect your organization, such as exchange, unemployment, inflation, and industry rates?
Social - What external social factors impact your organization, like lifestyle, demographics, population size, and immigration? With these factors, you can decide on potential buying behavior from your customers.
Technological - What current or future technology and its consumption and access affect your business success? Understanding your technical infrastructure to create and distribute products and services provides insight into your business operations.
A PESTLE analysis examines not just your political, economic, social, and technological factors but legal and environmental as well.
Legal - To operate your business, you must consider and perform within legal laws, such as consumer, labor, and safety.
Environmental - What environmental factors affect your business, such as climate policy, geographical location, and weather seasons? Consider these elements and how you and your team deal with them.
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