Modern business now reached a fairly high level of development, where the utmost importance is given to monitoring the factors that have a major impact on the successful development of the company.One of the main methods, which today is used by large enterprises, a PEST-analysis.It is a comprehensive analysis of the external factors that influence the activities of economic entities.The very name contains the main areas that are analyzed - politics, economics, society and technology (political, economic, society, technology - PEST).
this level of analysis is conducted to identify both micro and macro factors that have a direct impact on the results as the company's current operations and future prospects.It should be noted that the structure of the environment PEST-analysis identifies the macro (which includes an analysis of the political regime, economic, scientific and technological progress, social and demographic environment and natural factors) and microenvironment (competitors, customers, suppliers, shareholders, labor unions, etc.), the first number of factors given greater importance.
It is important to note that of all the external factors that influence the activities of the company, the highest priority should be given to the political factor, because the government can directly affect the economic component of the state, artificially applying certain decisions to keep certain economiccourse.Due to the National Bank, which is owned by the state, the government is changing the discount rate, controls the amount of cash in circulation, analyzes the level of GDP and so on.Thus, PEST-analysis of a company must necessarily include the political aspects of the State in which the economic activities.The same should be taken into account when entering foreign markets, as the lack of information in this area can lead to an incorrect positioning of the product and reduce the actual profit opportunities of doing business.It should also be aware of the tax laws and regulations in force in this area.
The banking sector also performed PEST-analysis, which takes into account the economic, social and technological factors in the implementation of strategic planning and development of the financial sector.Economic factors include interest rates, foreign exchange rates, inflation, the amount of cash in circulation, the unemployment rate, energy prices, and the actual investment policy of the personal income of the population on average.In addition, PEST-analysis of the Bank includes such socio-cultural factors, such as changes in consumer preferences, lifestyle different population groups, consumer activity, the demographic structure and the mobility of the population.An important role in determining the long-term goals and objectives in the banking sector is also played by technological factors, which are the most rapid and significant scale effects.This should include the development trend of R & D, protection of intellectual property, R & D costs, the emergence of new technology and electronic technology, patents for new inventions and so on.
PEST-analysis is so important for any business planning, which often is the only way to respond quickly to changing circumstances.That's why most companies and banks in the mandatory use methods PEST-analysis, because it allows you to make the operation more successful enterprise.
