Determine the pest analysis and its derivatives, Financial Management

PEST analysis and its derivatives

Such  a  process  is  required for  an  organisation  to  be  continually  aware  of  external  factors within  its  general  or  industry  environment  in order  to  adapt  or  perhaps  change  its  course  of action as a result of such analysis for instance to protect against threats or grasp new opportunities.

Environmental analysis must be a continuous activity for management, particularly within uncertain or complex environments; many of the components used within the models discussed below are interrelated and will affect one another.

Models  like PEST  or  SLEPT  analysis  and  other  derivatives  of  these  for example  PESTLE  or SLEEPT  or  STEEPLE  can  be  used  for  analysing  the general  or  industry  environment.   Models are suitable because they analyse a range of general environmental factors that help management concentrate and focus on factors which influence organisation. An illustration of an industry analysis using acronym SLEPT is explained below. The longest derivative of SLEPT is 'STEEPLE', the 2 extra Es include ethical factors for instance morally acceptable behaviour and ecological factors for example 'environmentalist 'or green issues.

 

Posted Date: 9/3/2013 1:39:38 AM | Location : United States







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