Political factors are basically how the government intervenes in the economy. Specifically, political factors have areas including tax policylabour lawenvironmental lawtrade restrictionstariffsand political stability. Political factors may also include goods and services which the government aims to provide or be provided merit goods and those that the government does not want to be provided demerit goods or merit bads.
There are some excellent strategic planning methods that you can use analyze all these factors. SWOT, when broken down simply means analyzing the: Strengths — The advantages you have over the competition concerning this project.
Weaknesses — The disadvantages you have internally compared with your competitors. Opportunities — Current external trends which are waiting to be taken advantage of.
Threats — External movements which may cause a problem and have a negative impact on your business. By working through each of these points it is possible to identify any internal disadvantages or advantages which could benefit or hinder the outcome of a planned project.
In addition to evaluating the state internally, this method is also able to identify the external factors which could also make a difference to the success or failure of a project.
You can easily create SWOT diagrams using our diagramming tool. Or you can use our SWOT analysis templates to get started instantly. One of many SWOT analysis templates available at Creately click to use at template Using the Information By knowing this information it can be possible to plan a successful project that is ready to work around certain problems effectively and to avoid failure.
It is a good idea and excellent practice to work through the SWOT Analysis with your team in the early stages of project planning. Brainstorming is a great way of introducing all the relevant internal and external factors for each section of the analysis.
PEST stands for the analysis of the external factors which are beneficial when conducting research before beginning a new project or to help conduct market research.
Economic — Taxes, interest rates, inflation, the stock markets and consumer confidence all need to be taken into account. Social — The changes in lifestyle and buying trends, media, major events, ethics, advertising and publicity factors.
Technological — Innovations, access to technology, licensing and patents, manufacturing, research funding, global communications.
Environmental — Environmental issues either locally or globally and their social and political factors. Unlike SWOT this strategy is more directly aimed at the external macro environmental factors that might be affecting the position of your business, the reasons behind growth or decline in the market and also identify new directions for the business as a whole.
Creately has some excellent PEST analysis templates for you to get started instantly. They are both planning methods that give tremendous insights for you to successfully execute projects.
It deeply analyzed the external factors that might affect your project or organization.
So if you plan your projects based only on the PEST analysis you will not have a chance to match your strengths to a current need. SWOT analysis considers both the internal and external factors. It captures the external factors in the opportunities and threats section.
However, when creating a SWOT diagram a deep analysis of external factors are not performed.
At least not as extensively as a PEST analysis. So you might miss out on external factors that can benefit your project. So a better approach would be to perform an extensive PEST analysis and use that finding in the opportunities and threats section in the SWOT analysis.
It is best practice to do the PEST analysis and include the results in SWOT analysis Working as a Team for the Benefit of a Project When teams are not in the same building it can be difficult to get together and brainstorm effectively about a project.
This could lead to vital information getting neglected, thus damaging the project.An effective way to analyse key features of the external environment is to use PESTLE analysis.
An effective way to analyse key features of the external environment is to use PESTLE analysis. Impact of pressure groups Consumer tastes & fashions Join s of fellow Business teachers and students all getting the tutor2u Business team's.
A PEST analysis examines how external factors can affect a business's activities and performance. It's a way of understanding how external forces impact your business. It was created by. Feb 13, · PEST analysis is an analysis of the political, economic, social and technological factors in the external environment of an organization, which can affect its activities and performance.
Free pest market analysis template, method, free pest grid examples, for business and marketing strategy and planning, plus more free online business tools, tips, and training for management, sales, marketing, project management, communications, leadership, .
PEST analysis (political, factors to be taken into consideration. It is a strategic tool for understanding market growth or decline, business position, potential and direction for operations. governments have a high impact on the health, education, and infrastructure of a nation.
Economic factors include economic growth, interest. involves the collection and portrayal of information about external factors which have, or may have, an impact on business.
 Understanding the tool. This allows focusing on the most important changes that might have an impact on the company.
PEST analysis example. The following table shows PEST analysis example. It lists opportunities.