What factors are assessed in a PEST analysis?

A PEST analysis is a strategic tool used to identify and assess the external factors that can impact an organization or business. The factors involved in a PEST analysis are categorized into four key areas: Political, Economic, Social, and Technological influences.

Political factors encompass government policies, regulations, and stability that can affect operations. Economic factors include the overall economic environment, such as inflation rates, unemployment rates, and economic growth, which can influence consumer behavior and business profitability. Social factors focus on societal trends and influences, including demographics, cultural changes, and consumer attitudes towards products or services. Lastly, technological factors refer to technological advancements, innovations, and the impact of new technologies on the market and business practices.

This method enables businesses to understand the broader context in which they operate and helps in strategic planning and decision-making. The other options listed focus on different aspects of business analysis. For instance, the first option aligns with marketing mix strategies, while the third option pertains to SWOT analysis, which evaluates internal and external factors regarding an organization's strengths, weaknesses, opportunities, and threats. The fourth option is focused on market strategies, specifically around how to effectively reach and engage target audiences.