Project
PEST ANALYSIS
A PEST analysis usually measures a market. It stands for "Political,
Economic, Social, and Technological analysis". It is a part of the external analysis when conducting a strategic analysis or doing market research, and gives an overview of the different macro environmental factors that the company has to take into consideration. It is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations.
COMPOSITION
Political Factors
It includes government regulations and legal issues and defines both formal and informal rules under which the firm must operate. Some examples include:
Tax policy
Employment laws
Environmental regulation
Trade restrictions $ tariffs
Political stability
Economic Factors
It affects the purchasing power of potential customers and the firm’s cost of capital. The following are examples of factors in the macro economy:
Economic growth
Interest rates
Exchange rates
Inflation rate
Social Factors
It includes the demographic $ cultural aspects of the external microenvironment. These factors affect customer needs and the size of the potential markets. Some social factors include:
Health consciousness
Population growth rate
Age distribution
Career attitude
Emphasis on safety
Technological Factors
It can lower barriers to entry, reduce minimum efficient production levels, and influence outsourcing decisions. Some technological factors include:
Technological incentives
Rate of technological change
Global communication
SWOT ANALYSIS
A SWOT analysis usually measures a business unit. It is a method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. This analysis is helpful in providing information for matching the firm’s resources $ capabilities to the competitive environment in which it operates. As such, it is an instrument in strategy formulation and selection.
COMPOSITION
Strengths
A firm’s strength
A PEST analysis usually measures a market. It stands for "Political,
Economic, Social, and Technological analysis". It is a part of the external analysis when conducting a strategic analysis or doing market research, and gives an overview of the different macro environmental factors that the company has to take into consideration. It is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations.
COMPOSITION
Political Factors
It includes government regulations and legal issues and defines both formal and informal rules under which the firm must operate. Some examples include:
Tax policy
Employment laws
Environmental regulation
Trade restrictions $ tariffs
Political stability
Economic Factors
It affects the purchasing power of potential customers and the firm’s cost of capital. The following are examples of factors in the macro economy:
Economic growth
Interest rates
Exchange rates
Inflation rate
Social Factors
It includes the demographic $ cultural aspects of the external microenvironment. These factors affect customer needs and the size of the potential markets. Some social factors include:
Health consciousness
Population growth rate
Age distribution
Career attitude
Emphasis on safety
Technological Factors
It can lower barriers to entry, reduce minimum efficient production levels, and influence outsourcing decisions. Some technological factors include:
Technological incentives
Rate of technological change
Global communication
SWOT ANALYSIS
A SWOT analysis usually measures a business unit. It is a method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. This analysis is helpful in providing information for matching the firm’s resources $ capabilities to the competitive environment in which it operates. As such, it is an instrument in strategy formulation and selection.
COMPOSITION
Strengths
A firm’s strength