Answer to Question #272300 in Economics for Aileen Lucero

Question

In reference with the given picture of SWOT vs. PEST Analysis, answer the following questions.

1. How would you compare the two tools?

2. How would you related the two tools?

3. When do you use the SWOT and PEST Analysis?

Answer 1

1. PEST analysis refers to Political, Economical, Social, and Technological factors which influence the business environment. SWOT analysis refers to Strengths, Weaknesses, Opportunity and Threats.

2. PEST has correlates strongly with the threats component of SWOT, but also has relevance to the opportunities assessment.

PEST focuses on external environmental factors that affect the business, whereas SWOT analysis focuses on both internal and external factors. PEST explores the political and legal landscape by looking at employment laws, political issues, taxes and regulations that impact the business.

3. You can employ a SWOT analysis before you commit to any sort of company action, whether you are exploring new initiatives, revamping internal policies, considering opportunities to pivot or altering a plan midway through its execution.

PEST analysis is beneficial when conducting research before beginning a new project or to help conduct market research, using these factors: Political—Laws, global issues, legislation and regulations that may have an effect on your business either immediately or in the future.