The Pest Analysis Is A Tool Used For Studies Diverse Macro Environmental Factors

1159 Words Dec 8th, 2016 5 Pages
The PEST Analysis is a tool used to studies diverse macro-environmental factors to achieve the future opportunities and threats from probable changes in the environment by analysing the Political, Economic, Social and Technological conditions related issues.
According to Youll (1999)
“A structured process that allow an organisation to investigate the major external factors that may impact on its current, and future, operations” (Tourism Business Environment, Week 7)
Political factors refer to the degree of government intervention in the nation economy where this may differ among nation where different nation conduct different type of economy such as free economy, control economy or free market.
According to The Oxford Dictionary: It defines politic as:
“The activities associated with the governance of a country or area, especially the debate between parties having power”
“The activities of governments concerning the political relations between states”. (Tourism Business Environment Week 7)
Economic factors include all the determinants of an economy and its condition such as inflation rate, interest rates, exchange rates, taxation, economy growth, the unemployability rate and policies where these factors can impact how the business or nation operate and make decision
According to World Bank, 2015
“Economic growth is an increase in the production and consumption of goods and services. It entails increasing population and/or per capita consumption. It is indicated by…

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