A PEST analysis creates an overview. No matter what industry the company is in, whether it is a large or small company, whether the upheavals we are exposed to are large or small, the company must be aware of the changes in the surroundings. By having a good overview, the company can respond to and best of all be at the forefront of the opportunities and threats the upheavals expose the company to. A PEST analysis can help to create an overview of this.

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A PEST analysis thus helps to structure what is happening in the large surroundings, which has an outside influence on your company. The main purpose is therefore to determine the main critical factors that affect your company and determine how those factors actually affect the company as well.

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The letters PEST stands for Political, Economic, Social and Technological

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Ooliticand legal factors e.g.

• monopolies and public regulation
• fiscal policies
• protection of certain sectors;
• amended legislation
• choice, etc.

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Economicand demographic conditions, e.g.

• gross domestic product
• currency ratio
• economic upturn or slowdown
• Interest rates
• economic structure, etc.

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Sociocultural conditions e.g.

• Level
• income distribution
• demographic development
• mobility
• set of values, etc.

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Ecologicaland environmental conditions

• online shopping
• digitisation
• Effectivity
• research and development activities
• presence, etc.

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A PEST analysis must not only be prepared so that you can then tick the mark by now it is completed it must together with your other strategy material be translated into concrete actions . An easy and simple approach is to use MakeMyStrategy™ as structures and summarize all your work into one comprehensive and coordinated action plan.

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The output and value for me is far greater than the price

Jeanne Lindholdt

CEO & Founder

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