What is a PEST analysis and why should it be essential for your company.

Do you remember that it is a SWOT analysis? Where we analyze the strengths, weaknesses, opportunities, and threats of our company. Well, PEST analysis allows us to examine the external factors that surround our company, which greatly influence the destiny of our company. The external factors to be taken into account in this analysis are:

P-Politic.- The political stability of the country, defeats of presidents in periods of time, constant changes in tariff policies, customs laws, political relations with other countries and foreign trade among others are analyzed.

E-Economic .- Analyzes Macro-Economic and Micro-Economic factors, inflation rates of the country, interest rates, economic growth, productive matrix of the state.

S-Social. – Analyze the population, its demographics, culture, beliefs, religions, language, ethnic origin, trends, population growth, mortality rate, among other details that may be useful analyzed depending on the type of product and market you are seeking to capture.

T-Technological. – It focuses on the development of technology that the country possesses, as well as national production, as well as foreign acquisition.

Some reports adopt the last acronym to this report which is the one that stands for Ambiental and in my opinion in these times of awareness must be fundamental. (PESTA)

A-Environmental .- It is responsible for analyzing the available natural resources and in turn how the use of these can create a malaise in the population, the attitude on the part of the community towards recycling and environmental care.