PEST analysis is used to identify the macro-economic conditions which drive the strategy of a company or business house. It is completely related to the macro-economic condition as it considers only the macro-economic factors.
The main parts of PEST Analysis are
Political factors indicate how the domestic political environment affects the business and economy. Any laws, policy, initiatives by the government come under this category.
Main Political factors are as follows
Economic factors indicate the economic health and its suitability for more economic and industrial growth. Economic health includes Purchasing Power Parity, GDP per Capital, GDP growth etc. All the major economic factors are outlines as follows
Social factors include the cultural and social aspects of a country. Better social aspects and parameters always set up the basic foundation for higher economic and industrial growth. Main social factors involved here are
Technology factors indicate the technological aspects of a country including R&D, Technological changes, technological advancement and acceptance etc. As per economics, technological advancement plays an important role in driving GDP growth for an economy. Technological advancement and more innovation lead to faster growth. The main technological factors are as follows
PEST Analysis is widely used for analyzing the macro-economic environment before finalizing the business and expansion strategy.