PEST analysis: how to do it and why is it important?
Posted: Mon Dec 23, 2024 10:33 am
PEST Analysis is an analytical tool used to help companies better understand the context in which they operate, helping them prepare for risks and take advantage of market opportunities.
Have strategic information at hand and strengthen your business: discover PEST Analysis!
What you will see in this article:
What is PEST Analysis?
The Importance of PEST Analysis in Companies
How to Perform a PEST/PESTAL Analysis?
What is PEST Analysis?
To survive and be successful, every company needs to know the market in which it operates well. Otherwise, external actions can harm its activities and, consequently, its results.
In this sense, having concrete and credible data is important to assess call number list scenario, change or impact in the context in which the organization is involved, giving it a guide to prepare for the transformations and complex situations that will come. And, to obtain this information, it is necessary to adopt the right tools.
A widely used option to understand the company's context is the PEST Analysis — or PESTAL Analysis (according to some lines that expand the fields evaluated in this methodology). This analytical model offers a way to study the company's macro vision, observing the external scenario and its relationship with the organization.
In short, the tool helps entrepreneurs and leaders to understand in greater depth the external forces that impact the company's operations, in order to help them make better decisions and improve business performance.
This is because this mechanism allows the company to investigate important areas in the context in which it operates. PEST is an acronym, in which each letter stands for:
P - Politics
E - Economy
S - Social
T - Technology
In the case of the PESTEL acronym, two more areas are included in the assessment:
A - Environmental
L - Cool
In this way, this tool allows the company to carry out a broad study of the scenario in which it operates, better understanding the factors that will impact (directly or indirectly) its activities and results.
Have strategic information at hand and strengthen your business: discover PEST Analysis!
What you will see in this article:
What is PEST Analysis?
The Importance of PEST Analysis in Companies
How to Perform a PEST/PESTAL Analysis?
What is PEST Analysis?
To survive and be successful, every company needs to know the market in which it operates well. Otherwise, external actions can harm its activities and, consequently, its results.
In this sense, having concrete and credible data is important to assess call number list scenario, change or impact in the context in which the organization is involved, giving it a guide to prepare for the transformations and complex situations that will come. And, to obtain this information, it is necessary to adopt the right tools.
A widely used option to understand the company's context is the PEST Analysis — or PESTAL Analysis (according to some lines that expand the fields evaluated in this methodology). This analytical model offers a way to study the company's macro vision, observing the external scenario and its relationship with the organization.
In short, the tool helps entrepreneurs and leaders to understand in greater depth the external forces that impact the company's operations, in order to help them make better decisions and improve business performance.
This is because this mechanism allows the company to investigate important areas in the context in which it operates. PEST is an acronym, in which each letter stands for:
P - Politics
E - Economy
S - Social
T - Technology
In the case of the PESTEL acronym, two more areas are included in the assessment:
A - Environmental
L - Cool
In this way, this tool allows the company to carry out a broad study of the scenario in which it operates, better understanding the factors that will impact (directly or indirectly) its activities and results.