In 6th European conference on research methodology for business and management studies, Lisbon, Portugal (p. Using PEST analysis as a tool for refining and focusing contexts for information systems research.
International Journal of Economy, Management and Social Sciences, 2(2), 31-36. Using PEST analysis to improve business performance. International Studies of Management & Organization, 36(3), 50-76. The role of scenario planning in exploring the environment in view of the limitations of PEST and its derivatives.
Social - third step of a PEST analysis concentrates around society.See more examples of Economic factors affecting business These factors include: gross domestic product (GDP), demand, stock market, currency rate fluctuations, rate of inflations, market substitutes, complementary products, tax policy, commodity price changes, revenues and savings of consumers and level of unemployment. Interest rates and fiscal policy creates overall economic conditions, influencing purchasing power of consumers and structure of their expenditure. Economical - second step of PEST analysis is focused on economic factors.See more examples of Political factors affecting business These factors include: political situation, political stability, state legislation, market regulations, state interference, trade agreements, tariffs or restrictions, taxes, lobbying and clarity of law, and other legal factors affecting business. Political - first step of a PEST analysis is a study of political factors which could create plenty of advantages and opportunities for organizations.
Due to increasing rate of change in environment management has to continuously monitor, identify and observe trends of all important factors influencing its strategy. Macro environment has a significant effect on business entities’ activities, but most importantly these forces and factors are independent from activities of company and its management. PEST analysis is one of the most popular and simple method for strategic analysis of organization’s macro environment containing four group of factors: Political, Economic, Social and Technological.