Macroeconomics

PEST Analysis• Why do we need it ?

PESTEL analysis provides a strong framework used by global and multinational corporations to set the stage to develop specific tactics to mitigate the risks involved in executing their vision in unfamiliar environments.

PEST/PESTEL Analysis

Advantages of PEST Analysis

• Simple and only costs time to do.• Provides an understanding of the wider business

environment.• Encourages the development of strategic

thinking.• May raise awareness of threats to a project.• Can help an organisation to anticipate future

difficulties and take action to avoid or minimise their effect.

• Can help an organisation to spot opportunities and exploit them

Disadvantages of PEST Analysis

• External Factors are Dynamic.• Its is considered as Simple• Data Integrity• Lack of easily available information• Gets ambiguous• It only covers external environment