Pest Analysis Essay Example for Free

Pest Analysis EssayThe growing importance of environmental or ecological factors in the first ex of the 21st century have given rise to green handicraft and encouraged widespread use of an updated version of the PEST framework. STEER analysis consistently considers Socio-cultural, Technological, Economic, Ecological, and Regulatory factors. Contents * 1 History * 2 Overview * 3 References * 4 External links History According to the site RapidBI The term PEST was primarily called the ETPS and was quoted in Aguilar, Francis (1967). examine the Business Environment.New York Macmillan.. , who discusses ETPS a mnemonic for the four sectors of what he calls his taxonomy of the business environment Economic, Technical, Political, and Social. Sometime after this initial publication, Arnold Brown for the lay down of Life Insurance reorganized it as STEP as a way to organise the results of his environmental scanning. Over time by academics and others in business it was modified yet again to become a so-called STEPE analysis (the Social, Technical, Economic, Political, and Ecological taxonomies).In the 1980s, several other authors including Fahey, Narayanan, Morrison, Renfro, Boucher, Mecca and Porter included variations of the taxonomy classifications in a variety of orders Due to the negative connotations of PEST, a STEP analysis (re-ordering of the acronym letters) also exists, but is used to a lesser extent. Some academics claim that STEP or PEST still contain headings which are appropriate for all situations and do not require additional elements, other claim that the additional breakdown of most factors to help individuals and teams undertaking an environmental scan.Political factors include areas such as tax policy, employment laws, environmental regulations, trade restrictions and tariffs and political stability. * Economic factors are sparing growth, interest rates, exchange rates and inflation rate. Social factors often appearance at the cultural a spects and include health consciousness, population growth rate, age distribution, life history attitudes and emphasis on safety. * Technological factors include ecological and environmental aspects and can determine barriers to entry, minimum efficient production level and influence outsourcing decisions. Technological factors look at elements such as RD activity, automation, technology incentives and the rate of technological change.The pestfactors combined with external microenvironmental factors can be classified as opportunities and threats in a SWOT analysis. PEST/PESTLE alongside SWOT and SLEPT can be used as a basis for the analysis of business and environmental factors. 2 References Aguilar, Francis (2006). Scanning the Business Environment. New York Macmillan..