PEST Analysis (Political, Economic, Social, Technological)

PEST Analysis is a tool used to understand the external factors that can affect a market or business. It examines four key areas: 1. **Political** - laws, regulations, and government stability. 2. **Economic** - economic growth, interest rates, and inflation. 3. **Social** - cultural trends, demographics, and consumer behavior. 4. **Technological** - innovations, automation, and technology trends. By analyzing these areas, businesses can identify opportunities and threats in their environment, helping them make informed decisions and better strategize for the future.