PEST Analysis: Political, Economic, Social And Technological

What is PEST analysis?

PEST is an acronym for Political, Economic, Social and Technological. This analysis is used to assess these four external factors in relation to your business or company situation. Basically, a PEST analysis helps you determine how these factors will affect the performance of your business in the long-term. It is often used in collaboration with other analytical business tools like the SWOT analysis and Porter’s Five Forces to give a clear understanding of a situation and related internal and external factors. (Contributor, 2017)

Political

Federal, state, and local laws are assessed as well as other countries’ laws and global laws in terms of their ability to affect the business environment and trade markets. For an

Nowadays, we can see that everyone own at least a mobile phone, the average age of mobile phone use go lower and lower which mean there are many kids start to use mobile phone at their young age. Through increasingly using the mobile phone it changed from a society culture to a personal culture. Mobile phone becomes an important tool for Malaysians. Due to this factor there are difficulties to understand one person preferences and behaviors because that person preferences and behavior might change according to his surrounding social and culture.

Technological

In term of technological Malaysia still not able to meet the world’s standard, however it is still putting in effort to get there. Communication and IT infrastructure is a key element to achieve industrialized nation status by 2020. This creates a huge demand of IT and communication technologies and through this south-east Asian markets can grab more attention in future. Every company in Malaysia need telecommunication to run their business because with advance technology they can save time and able to produce accurate result.

The PEST investigation is worried about the outside condition. Inside every rule are a few components, for example, the law, physical condition, and maybe even the mores and morals of the populace. The individuals who are working together in an outside nation would discover the aftereffects of the investigation to a great degree important. Data can decide if there ought to be a development, or only union of business inside the fringes. Take Digi as a example, I suggest that they can expand their company since nowadays mobile phone become a very important tools for Malaysian. As administrative limitations fall the world over, organizations are searching for new markets that have not been tested some time recently. The PEST examination can help settle on the choice regardless of whether a specific nation or area holds any potential for beneficial business.For an example, Digi have no worry to expand their business because Communication and IT infrastructure is a key element to achieve industrialized nation status by 2020. This creates a huge demand of IT and communication technologies. Any market has the potential for good or awful, and the examination measures things in an extremely target adjust. It 's a given that PEST investigation supports key arranging and gives the important information. (Brighton School of Business and Management,