How to analyze a company's pest analysis?

As follows:

PEST analysis process:

1. List the key macro factors identified during the environmental change analysis process. Introduction to key factor identification methods:

Brainstorming, cause-and-effect analysis, group discussion, and critical incident method.

2. Determine the weight according to the specific impact of each factor on the enterprise, and assign weight to each factor; Common factors weight determination methods:

Experiential judgment method, reference method, three-dimensional determination method , value factor analysis method.

3. Score each key factor according to the company's current strategy; determine the company's strategic model:

Manufacturing strategy, financial investment strategy, human resources strategy, marketing strategy, product research and development strategy.

Attention should be paid to the following issues when scoring:

Clear current strategy, group evaluation, open process, and collective decision-making.

4. Multiply the weight of each key factor by its score to obtain the weighted score of each factor; points to note when calculating scores:

Statistical process supervision, data correction, data analysis.

5. Add the weighted scores of all factors to obtain the total weighted score of the macro environment of the enterprise.

Details of the four elements of PEST:

A basic tool for strategic external environment analysis, used to analyze the impact of the customer's macro-environment on strategy, and applied to company strategic planning, market planning, Product business development and research report writing.

Politics: Political and legal factors refer to the political forces and relevant laws, regulations and other factors that have actual and potential impact on the organization's business activities.

Economy: Economic factors refer to a country’s economic system, economic structure, industrial layout, resource status, economic development level and future economic trends. The economic environment mainly includes macro and micro aspects.

The macroeconomic environment mainly refers to a country's population and its growth trend, national income, gross national product and their changes, as well as the level and speed of national economic development that can be reflected by these indicators. The microeconomic environment mainly refers to factors such as the income level, consumption preferences, savings, and employment level of consumers in the area where the enterprise is located or the area it serves.

Social culture: Social cultural factors refer to the national characteristics, cultural traditions, values, religious beliefs, education levels, customs and other factors of the members of the society where the organization is located.

Every society has its core values, which are often highly sustainable. These values ??and cultural traditions are the accumulation of history and are spread and continued through family reproduction and social education, so they are quite stable. sex.

Technology: Technical elements include not only those inventions that have caused revolutionary changes, but also the emergence and development trends and application prospects of new technologies, new processes, and new materials related to enterprise production.

You should also keep abreast of:?

1.?The country’s focus on investment and support for scientific and technological development.

2. Technology development trends and total research and development expenses in this field.

3. Technology transfer and technology commercialization speed.

4. Patents and their protection status, etc.

Extension of PEST PESTEL:

Political factors (Political): refers to political forces and related policies, laws and regulations and other factors that have actual and potential impact on the organization's business activities.

Economic factors (Economic): refers to the economic structure, industrial layout, resource status, economic development level and future economic trends outside the organization.

Social factors (Social): refers to factors such as the historical development, cultural traditions, values, education levels, customs and habits of the members of the society in which the organization is located. Technical factors (Technological): Technical factors include not only those inventions that cause revolutionary changes, but also the emergence and development trends and application prospects of new technologies, new processes, and new materials related to enterprise production.

Environmental factors (Environmental): Elements of an organization's activities, products or services that can interact with the environment.

Legal factors (Legal): A comprehensive system composed of laws, regulations, judicial conditions and citizens’ legal awareness outside the organization.