Introduction:

Hi my dear comrades welcome to OopiriFive blogging platform post (6).In this blog I determine about PEST Analysis which is the most significant play key role in different sectors of business ventures.

So my dear friends here we need to know what PEST Analysis is and how it will show impact on every business organization. As well as I describe information about topic with detailed examples.

PEST Analysis

What is PEST Analysis;

The PEST Analysis is a master planning tool which is utilizes to identify and analyze external macro environmental factors which can impact on companies.

Each of this element indicates variant types of influences which show affect on every business functions.

The acronym PEST Stands for political, economical, social and technological. As well as the purpose of pest analysis is to help companies by identifying opportunities and threats in the external environment.

Now let’s move to start each element factor to discuss with detail corporate examples.

Note: Guys one important point to say that here you need to read carefully because it is some typical topic to understand for everyone.

PEST Analysis

Components of PEST Analysis.

Political Factors:

• Dear viewers coming to Political factors this include government policies, taxation, regulations, trade policy, international relations and political stability. I think here you may get question why I am saying with simple point .Don’t worry guys I demonstrate with in detail example.

If suppose their one Automobile company and name of it is Volvo. So this Volvo Company selects one country to enter in the market

  For this mission the company starts research and analyze in political information like

• What are the government policies in that country? And how we enlist those policies.
• How much they put tax on products and how much they decline tariffs on products.
• What they create trade policies and how should we overcome it.
• Which government party is running in that country and there is chance of  political stability is their or not.

So dear viewers these points raised by companies when they do political research and they make decisions to enter are not in the market. Because

If they enter without research about political the organization should face several problems and those are

Example

When government increase taxation on products this may lead to increase in product price and when product price increase their no public to come afford to buy those products and finally the company should face loss downfall market.

Economic factor:

The economic factor represents about how the economic environment can involve in business performance and those activities are

• Inflation and interest rates,
• Exchange rates and currency.
• Employment levels and economic growth.
• Consumer spending habits.

Guys Here we need to know that company do economic research analyze the information and listed some points to us . Those are

• The organizations observe the inflation in their targeted countries for enter into market and they check what are the interest rates are given by bank for companies which they are selected.
• As well as they analyze information about exchange rates it means they check which currencies are there in that selected country and how much exchange rates are getting to us.
• The companies check customers spending habits it mean like what they are buying, how much quantity they were  buying and how much money they need to spend to products like all data they do research and make decisions to launching of products and creation of products.

Social Factors:

Moving into the social factors this will demonstrate about social environmental points which take involvement in consumer behavior and market trends. Here those points are

• Education levels
• Lifestyle changes and attitudes
• Population growth and demographics
• Health consciousness
• Income levels

 Whatever I mentioned points in above section I will simply with easy explanation so don’t get confuse my dear viewers.

• First coming to education levels the organizations do the research on their preferring areas and collect the data like
• How much percentage education levels are there in that area.
• They check data about people is possible to read or not and write or not

As well as they can understand of language or not. Hence these aspects were check by organizations.

• Second point the companies take a deep focus on public lifestyles and their attitudes how they behavior to communicate.
• The organization collect information about  how much population is present in their selected location and they divide data like how much male people and female population is there in that location.
• Moreover the organization do enquires about public income levels, because there is a reason behind about why companies check income level?

Here the companies get data like how much amount people are spending on products and services from business sectors simply we should say how much people afford to buy and how much they spending as well as how much average incomes levels is there in that area location.

• Final point the organizations do the research and analyze about health consciousness I their selected areas.

Technological factors:

The technological factors involve about technological developments which could impact on business efficiency, innovation and competitiveness.

There is list of examples to explain:

• Artificial intelligence
• Cybercrime
• Big data
• Level of innovation
• Automation
• Robotics
• Tech incentives.

Dear audience here I need to explain three points whatever I mentioned in above section with detailed examples. So let’s jump into topic

• The companies do the research on market like how many competitors are using Artificial intelligence technology in their business fields and how should we adapt that technology and overcome the competitors.

As well as how much percentage of artificial intelligence will involve impact on business and what are the benefits are getting by using A.I Technology. Hence these points are analyzed by the company under artificial intelligence.

• Coming to second point the organizations always get awareness about cybercrime it means they check cybercrime attacks are there or not.

Along that they enquiry about cybercrime facilities are there or not.

Because without cyber security the company data will be in danger zone it means the hackers will hack the data from company and they misuse it.

• The company must and do research on technology for purpose to adapt and develop their research development operations, manufacturing operations as well as accounting operations.

So by adapting technological factors the company analyze all over the data and make strategic planning to beat market in their targeted locations.

Conclusion:

Overall coming to the topic we learned about four environmental factors that could impact on business performance and those elements are political, economical, social and technological factors.

As well as by presence of these kind of topic their is most advantages for every companies to do research on external environmental factors for purpose of making strategic planning and decisions for development of organizations to sustain in market.

PEST Analysis