PEST Considerations for Business Analysts



Join Balanced Scorecard Group 

Practice-based Balanced Scorecard Trainings

Online KPI Dashboard Sign up with web-based KPI Dashboard:

  • Access your KPIs online;
  • Measure your success;

Navigation: All Balanced Scorecard Articles > BSC Training

PEST analysis is very popular since it covers the most important business environments every company is bound to operate in. Here in this article we will share a few tips on PEST and its applications. Check additional information about PEST considerations.

It is not easy to run and manage successful business without strategic planning and constant readiness to solve problems. Even if your business is doing OK now, the situation may drastically change within a very short period of time. Your competitors are not idle. They do everything possible to wipe you out and gain competitive advantage over your company. Your customers can easily become theirs. In order to avoid serious problems, every business must undergo continues evaluation. Of course, it is impossible to avoid problems at all, but it is possible to solve some of them even before they show up. This is where various business analysis types help. Some of them focus on internal environment of the company, its business processes, intellectual potential of personnel etc. Others tend to concentrate on external environment and external factors which do not depend on the company. The only thing the company can do is to adapt to external environment in the most suitable way. PEST analysis is a typical example of business analysis procedure that focuses on for external factors, namely political, economic, social and technological. In this article we will talk about PEST components and PEST considerations.

To begin with, political environment needs to be properly analyzed. Why politics? Politicians themselves claim that their decisions have nothing to do with business and economy. Well, you have two alternatives: either to believe that or to analyze political influences in the economy. Decisions and statements made by the most prominent politicians can send shock waves throughout business circles. Politics has been always related to economy and very often political decisions are dictated by economic considerations, and vice versa. Thus, in order to forecast influences of political decisions on economic developments in the country, look for services of political analysts or invest in own political analytical department.

After the economy, there can be no doubts that economic situation in the country directly influence is welfare of small, midsize and big business. If the country economy is going through harsh times it is very difficult to succeed in the market with brand-new expense products. Economic forecasts can offer much valuable information on how to succeed. For example, even if the economy is sinking there should be ways to improve sales growth by making unique offers, loyalty programs etc. Economic analysis and the company position in the national economy is of an exceptional importance.

Socialization of business is an inevitable process. After all, business as a part of society, and everything that is going on in the society has its reflection and the business processes. Thus, social analysis will provide top managers with the information on most recent social trends and and expectations. This information should be used to make profits.

As to technological factor, there are no ways to succeed in the modern business without using the latest technologies in production process, relations with customers etc. This explains huge investments in research and development made by most leading companies in various industries. Such investments come back with huge revenues and improvement of competitive advantage.

If you are interested in PEST considerations, check this link to find out more about PEST considerations. Also, you can check other articles in BSC Training category.



 

10 steps self-education plan for Balanced Scorecard.

Subscribe to BSC Articles newsletter to learn more about how-to articles, BSC development and implementation.

Balanced Scorecard Toolkit 
Balanced Scorecard Toolkit includes step-by-step manuals, documents, presentations, check lists designed to help business professionals with successful development and implementation of Balanced Scorecard. Learn more about
BSC Toolkit.

Free Balanced Scorecard Templates

 

Balanced Scorecard Software - BSC Designer



Copyright © 2000-2010 Scorecard Report. All rights reserved.