PEST analysis Essay Example | Topics and Well Written Essays - 2250 words

PEST analysis - Essay ExampleThe external environment consists of four main factors, political, economic, social and technological (Dubrin, 2012). These factors are collectively known as PEST. These factors appear as opportunities for the organisation while it is also possible that at certain point in time, they pose threats. The organisations need to keep a constant eye upon these four factors to stay profitable and at times for core survival. The paper discusses about these factors and their influences upon the organisations policies, functions and profitability. Political Aspects of External Environment The political aspect of external environment is related to the government laws, legislations, rules, polices and other international principles that are enforced from time to time. These factors supersede all local and organisational doctrines and every organisation is bound to obey them for its existence (D’Anieri, 2009). The common example of this factor is tariff guidelines, tax rates, employment laws (Collins, 2010) and trade quotas.