PEST Analysis: Strength And Weaknesses

Option #1 Analysis of SWOT and PEST

Is your organization cautious when it comes to assuming risk? Many organizations are when the risk pertains to a new master plan. Prior to moving forward with a new strategic plan, an organization will want to determine the likelihood of the project’s success. In such a case, due diligence is required. Fortunately, there are tools available to evaluate a business venture prior to its undertaking. Tools such as a SWOT analysis as well as a PEST analysis are two valuable tools available for establishing a successful business strategy.

SWOT Analysis A SWOT analysis explores an organization’s internal strengths and weaknesses factors as well as the external factors of opportunities and threats (Wayland

Yet, knowing what problems as well as what opportunities may occur in the future is imperative if actions are to be implemented which use this information to the company’s advantage and makes the PEST analysis very useful. (Jurevicius, 2013).

Strengths, Limitation, Challenges of a PEST Analysis The PEST analysis is not without it’s weak aspects. One weakness is that areas identified by a PEST report can change incredibly quickly, sometimes within days (Roigé, Parry, Phillips & Worner, 2016). This aspect makes it significantly more difficult to ascertain their impact on the organization since the likelihood of these factors being present in the future is not known. In addition, environmental factors can be especially tricky as their impact may not even be noticed in the earliest stages (Roigé, Parry, Phillips & Worner, 2016).

Finally, each of the identified factors needs to be looked at in depth to accurately determine the level of impact they actually present. This is a challenge because if the analysis of each factor is not done accurately, the analysis is of no value at all. This is a huge limitation since the reduction of uncertainty for the organization is the entire purpose of the PEST analysis in the first