Unit II Discussion

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PEST analysis is a strategic planning technique created by Harvard professor Francis Aguilar in 1967 to assist companies in identifying and evaluating business risks and opportunities. (Barbara et al., 2017). PEST analysis is the way in which businesses analyze the external factors that affect the organization. In this analysis, business focuses on every external factor, including political, economic, social, & technological factors. Understanding external influences and how they may generate opportunities or dangers to your company is the primary goal of a PEST study. PEST analysis helps you in the following ways: Educate yourself on current external impacts on the company to base your decisions on facts rather than guesswork. It also helps to be competitive, you must minimize your risk exposure & maximize your return on investment, and it also improves the organization's long-term planning (Cox, 2021). When it comes to politics, you have to consider how laws, regulations, as well as the political environment, may influence your company's ability to operate freely & ultimately be profitable. Political factors include laws related to labor, environmental, tax, & trade tariffs. These laws directly or indirectly affect the organization (Barbara et al., 2017). Technology advancements have impacted the workforce by making remote employment more accessible & available. These alterations will significantly affect the future of employment, including how companies organize their operations and how they hire workers. I believe that rapid change in technology impacts organizations and their employees badly; Nokia is one of the biggest examples that didn't focus on the external factor and enjoyed short-term success. One major mistake that they made is that they ignored the technological changes (Cox, 2021). Reference

Cox, J. (2021). The higher education environment driving academic library strategy: A political, economic, social and technological (PEST) analysis. The Journal of Academic Librarianship, 47(1), 102219. Barbara, C., Cortis, D., Perotti, R., Sammut, C., & Vella, A. (2017). The european insurance industry: A PEST analysis. International Journal of Financial Studies, 5(2), 14.

Hi Professor, PEST is telling you about the external environmental factors. With the information about external environmental changes, you can change your current strategy. For example, in the automobile industry, every company wants to be the number 1, so they introduced hybrids with the help of external factors, and rapid change in technology made tesla the top contestant in electric cars. Due to a shortage of oil resources, Toyota also works on hydro-fuel cars. They just focus and the external factor and want to be competitive when the external environmental factors change. Hi Shaela, You have a great discussion, and it really captures my attention because I learn a lot from your perspective. I agree with you that PEST is used to predict whether a company will thrive or fail in the long term. This may be the deciding factor in whether or not your company succeeds. I have similar thoughts about the technological factor because the world has changed in the last two decades due to rapid technology changes, and companies that didn't adapt to the technological changes failed badly. With the help of technology, we can market our products to specific target groups by utilizing limited resources. Reference Barbara, C., Cortis, D., Perotti, R., Sammut, C., & Vella, A. (2017). The European insurance industry: A PEST analysis. International Journal of Financial Studies, 5(2), 14.

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Hi Sarah, I find your post very enlightening and precise. Your post covers every aspect of the subject in detail, and it is quite informative regarding the issues we are discussing this week. I think with the help of PEST analysis, companies make good strategies for gaining a competitive advantage. I agree with you that these four elements may serve as a useful guide for figuring out how the outside world affects your company. Even though it's easy to ignore the many outside influences on your company, the acronym PEST may help it flourish. Political and technological changes are those factors that can change the game like in the past two decades due to the fast changes in technology and businesses that failed to adapt to the changes in technology. With the help of technology, you can be more cost-efficient. Reference Barbara, C., Cortis, D., Perotti, R., Sammut, C., & Vella, A. (2017). The European insurance industry: A PEST analysis. International Journal of Financial Studies, 5(2), 14.

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