What is the history of the PEST Analysis framework and how can it be applied to a business?

The PEST Analysis framework was developed in the 1960s by Francis Aguilar, a Harvard Business School professor. It's a strategic tool used to evaluate the external macro-environmental factors (Political, Economic, Social, and Technological) that affect an organization. The purpose is to identify potential opportunities and threats, which could be used to gain a competitive advantage.

Applying PEST Analysis involves examining each of the PEST factors to identify the external forces affecting the business. Political factors could include government regulations and legal issues. Economic factors might involve economic growth, inflation rate, and exchange rates. Social factors could include cultural aspects, health consciousness, and population growth rate. Technological factors might involve R&D activity, automation, and rate of technological change. By understanding these factors, businesses can develop strategies that align with the external environment.

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Start with the history – familiarize yourself with your topic: read about its history, find out how it was established, how long it's been around and who was it founded by. Also, pay attention to major achievements associated with the topic that happened over the past few years Find political information – common political regulations to search for are tariffs, employment laws, health and safety, tax policies and trade control. Find economic information – some economic issues to pay attention to are taxes, Interest rates, demand and supply and recessions. Find social information – here, you'd examine how consumers are affected by political and economic factors. It is acceptable to draw conclusions based on the information you've already gathered from your political and economic factors research.

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PEST Analysis

Dive into competitiveness data and take into account the dynamics of your venture’s financial, technological and market performance with our PEST Anal...

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