PEST ANALYSIS
One of the lessons from Trends that caught my attention the
most is the PEST Analysis. It describes a framework of macro-environmental
factors used in the environmental scanning component of strategic management.
PEST analysis aims to examine how external factors (political, economic,
socio-cultural and technological) can affect your business environment. These
macro-environmental factors are important and should be taken into
consideration because all of these will have a big effect on the overall
performance of a business.
This lesson is one our lessons that I found most fascinating
because as a HUMSS Student, I think it is important to be aware of the issues
our society is going through, may it be politically, economically,
social-cultural or technological. While I was working on some of our homework,
take-home quizzes and during discussions, I realized that my level of
understanding and my knowledge about political factors and how they affect a
business performance such as health and hygiene policies, minimum wages, taxes
and regulation. I was able to understand how inflation rate, value of currency
and employment rates influence a business. Another thing is that I was able to
learn how current trends in our society such as globalization and health issues
are significant for the improvement of a business. Lastly is that I realized
how improvement and development of technology over time has a great
significance because nowadays, most business and operations in companies are
being controlled by technology for it makes our jobs easier, accessible and
convenient. I realized how crucial PEST analysis is because it can be helpful in
determining a business’ strengths and weaknesses.
PEST analysis challenged me to think critically by letting
me monitor factors and seek out possible opportunities for a business. An
example of this is when while I was doing my quiz in Trends for our fieldtrip.
Thinking of ideas where opportunities lie is pretty much a hard thing to do for
me but in the end, it made me realize that taking not of all these external
factors may reduce risk and threats in a business. In connection with our
global and local networks lesson in TRENDS, I also thought that through PEST
analysis, investors and businessmen and international businesses are able to
make smarter choices in their global marketing decisions. These are attributes
that must be thoroughly understood and analyzed in order to succeed whenever we
make international deals, investments and decisions. All variables must
consider the understanding of the advantages of global operational differences,
similarities, threats and opportunities that can be used to meet international
goals and standards.
I think understanding and learning about PEST analysis is
the best lesson I have encountered in TRENDS for this semester for it developed
my mind and helped me gain more knowledge about our society. Learning about
this topic is also an opportunity for me because in the future, I will be able
to use this method whenever for example I plan to put up my own business. By
applying this in my business, I think this would help me to make brighter and
wiser decisions for the success of my own business.
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