Modern business has now reachedsufficiently high level of development, where priority is given to monitoring those factors that have a great influence on the successful development of the enterprise. One of the main methods that is used today by large enterprises is PEST analysis. It is a comprehensive analysis of external factors that influence the activities of business entities. The title itself contains the main areas that are analyzed - politics, economics, society and technology (political, economic, society, technology - PEST).
The analysis of this level is carried out in order to identifyboth micro and macro factors that have a direct impact on the results of both the current activities of the company and the future. It should be noted that in the structure of the external environment, the PEST analysis identifies the macroenvironment (which includes analysis of the political regime, economy, scientific and technological progress, socio-demographic environment and natural factors) and the microenvironment (competitors, buyers, suppliers, shareholders, trade unions, etc.) ), with the first row of factors given greater importance.
It is important to note that among allexternal factors that influence the activity of the company, paramount attention should be paid to the political factor, since the government can directly influence the economic component of the state, artificially applying these or other regulations to keep a certain economic course. Thanks to the National Bank, which is owned by the state, the government changes the discount rate, controls the amount of money in circulation, analyzes the level of GDP, and so on. Thus, a PEST analysis of an enterprise must necessarily include the political aspects of the state in which the economic activity is carried out. The same should be taken into account when entering foreign markets, since a lack of information in this area can lead to incorrect product positioning and a decrease in the actual possibility of making a profit when doing business. You should also know the tax laws and applicable regulations in this area.
In the banking sector is also carried outPEST-analysis, which allows to take into account economic, social and technological factors in the implementation of strategic planning and development of the financial sector. Economic factors include the interest rate, foreign currency exchange rate, inflation rate, amount of cash in circulation, unemployment rate, energy prices, investment policy, and average personal personal income. In addition, the PEST analysis of the bank includes such sociocultural factors as changes in consumer preferences, lifestyle of different population groups, consumer activity, demographic structure, and population mobility. An important role in determining future goals and objectives in the banking sector is also played by technological factors that are the most rapid and important in terms of scale of impact. This should include trends in R & D development, intellectual property protection, R & D costs, the emergence of new technologies and electronic equipment, patents for new inventions, and so on.
PEST analysis is so important for anyplanning activities of the enterprise, which is often the only way to quickly respond to a changing situation. That is why the majority of organizations and banks use the methods of PEST analysis without fail, since this allows us to make the enterprise more successful.
