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1. How PEST Analysis Compliment SWOT Analysis
SWOT Analysis
How PEST Analysis
Compliment SWOT
Analysis

2. How PEST Analysis Compliment SWOT Analysis
SWOT Analysis
Strategically analyze your business. Find out what your strengths,
weaknesses, opportunities and threats are. Increase your strengths,
minimize your weaknesses, exploit your opportunities and avoid the
threats. Click here
PEST Analysis is a short form for "Political, Economic, Social, and
Technological analysis" and it describes a framework of macro-
environmental factors used in the environmental strategies. PEST
Analysis would be able to complement the SWOT Analysis in a
Strategic Planning Process.
Below are my interpretation of the four factors of PEST Analysis:-
1) Political
It deal with governmental policies which has a great influence to the
economics in a country. It is a macro aspect of an analyse which key
changes to the policies making. The policies have great influence to
the business sectors and confidence of investors.
Example: Reduction in import duty of floor tiles for ceramic industry
can have its fair share of influence to the industry. It is viewed as
positive to the local ceramic manufacturer as imported tiles are more

3. How PEST Analysis Compliment SWOT Analysis
SWOT Analysis
costly. However, it is negative impact to an importers such as traders
of such a product
2) Economic
The economic is an area in a macro economic environment. It can
affect the business outlook and its competitiveness. Some key factors
of macro economic are economic growth, exchange rate, interest rate,
etc, All these factors have an effect to the profitability and cost of
doing business in that business sector..
Example: Unstable bank interest rate affect the stability to the cost of
a business and it can viewed as a Opportunities and / or Threats to do
business.

4. How PEST Analysis Compliment SWOT Analysis
SWOT Analysis
3) Social
Social factors reflects the cultural aspects of a population in the
country. It affect the workforce management which influence the
productivity and cost of a business.
Example: Job preference from heavy to light industry changes the skill
developed by any company
4) Technological
Technological factors is visible and can be validated easily as it is
more tangible. It can be in a form of incentives by the government
such as such as Research & Development incentives, automation
reinvestment, high capital setup.
Example: Changes of consumer preference toward higher end product
which can be produced with higher technology.
In conclusion, PEST Analysis can be used to explore Opportunities and
Threats and it can channel to use as the external factors of a SWOT
Analysis template.

5. How PEST Analysis Compliment SWOT Analysis
SWOT Analysis
Dr. LM Foong, PhD
He writes and publishes TQM articles, Strategic Planning, SWOT Analysis. You can read
more Business SWOT Analysis articles here
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