Integrity: A professional accountant should be honest and straightforward in all of his business and professional relationships
Objectivity: in order to override business and professional judgments, a professional accountant must not allow bias, conflict of interests and undue influence of others.
Professional Competence and Due Care: while providing professional services, a professional accountant should act diligently and in accordance with application professional and accounting standards and should maintain professional knowledge and skills at the level that ensure that employers or clients are receiving competent professional services.
Confidentiality: A professional accountant should respect the confidentiality of information required …show more content…
On the other hand, the presence of greater degree of uncertainty in market, categorizing aspects such as strengths, weaknesses, opportunities and threats may be very subjective. It also produces a lot of information but organizations do not find all to be useful. Moreover, SWOT analysis focus on the significance of identification of these four aspects; however, it ignores the realization of alternative decisions or solutions of identified problems (Osita, Onyebuchi and Justina, …show more content…
PEST analysis is widely used to assess that market for a company. The political factors include legal issues and government regulations under which an organization operates. Economic factors affect the purchasing power of potential customers the company’s overall cost of capital. The demographic and cultural aspects of external microenvironment are included in social factors and technological factors are technology related aspects that can lower barriers to entry, influence outsourcing decisions and reduce minimum efficient production levels (Quickmba, 2017).
Limitations of PEST Analysis
PEST analysis is also not free from limitations. Since PEST analysis is associated with external factors of the company; therefore, external factors change over time and need constant reviewing and attention. Being based on assumptions and macroeconomic conditions, change in external factors can be barrier to the transparency of PEST analysis and make it susceptibility to discrepancies. Moreover, PEST analysis gives a mere presentation of factors which is not enough to judge and understand the real problems being faced by the company (PESTLE Analysis,
Objectivity: in order to override business and professional judgments, a professional accountant must not allow bias, conflict of interests and undue influence of others.
Professional Competence and Due Care: while providing professional services, a professional accountant should act diligently and in accordance with application professional and accounting standards and should maintain professional knowledge and skills at the level that ensure that employers or clients are receiving competent professional services.
Confidentiality: A professional accountant should respect the confidentiality of information required …show more content…
On the other hand, the presence of greater degree of uncertainty in market, categorizing aspects such as strengths, weaknesses, opportunities and threats may be very subjective. It also produces a lot of information but organizations do not find all to be useful. Moreover, SWOT analysis focus on the significance of identification of these four aspects; however, it ignores the realization of alternative decisions or solutions of identified problems (Osita, Onyebuchi and Justina, …show more content…
PEST analysis is widely used to assess that market for a company. The political factors include legal issues and government regulations under which an organization operates. Economic factors affect the purchasing power of potential customers the company’s overall cost of capital. The demographic and cultural aspects of external microenvironment are included in social factors and technological factors are technology related aspects that can lower barriers to entry, influence outsourcing decisions and reduce minimum efficient production levels (Quickmba, 2017).
Limitations of PEST Analysis
PEST analysis is also not free from limitations. Since PEST analysis is associated with external factors of the company; therefore, external factors change over time and need constant reviewing and attention. Being based on assumptions and macroeconomic conditions, change in external factors can be barrier to the transparency of PEST analysis and make it susceptibility to discrepancies. Moreover, PEST analysis gives a mere presentation of factors which is not enough to judge and understand the real problems being faced by the company (PESTLE Analysis,