Which of the following best describes a PEST analysis?
Practice Questions
1 question
Q1
Which of the following best describes a PEST analysis?
A method to analyze internal company resources
A framework for assessing external macro-environmental factors
A tool for measuring employee satisfaction
A strategy for product development
PEST analysis is a framework used to assess external macro-environmental factors such as Political, Economic, Social, and Technological influences.
Questions & Step-by-step Solutions
1 item
Q
Q: Which of the following best describes a PEST analysis?
Solution: PEST analysis is a framework used to assess external macro-environmental factors such as Political, Economic, Social, and Technological influences.
Steps: 4
Step 1: Understand that PEST stands for Political, Economic, Social, and Technological factors.
Step 2: Recognize that PEST analysis is a tool used to look at these four areas.
Step 3: Identify that this analysis helps businesses understand the external environment they operate in.
Step 4: Realize that by using PEST analysis, companies can make better strategic decisions.
