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Summarize these

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forces using the
PEST and
SWOT analysis
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What is SWOT analysis?
SWOT analysis involves looking at the internal strengths and
weaknesses of a business and external opportunities and threats.

In other word, it is used to analyze the possible internal


advantages and problems that a business has, and to determines
the external factors of the business which may affect its strategy.

 The purpose of a SWOT analysis is to conduct a general and


quick examination of a business’s current position so that it
can help the business to develop or plan a direction of
development or a proper strategy in future.
Strengths
 Strengths are factors which the company holds expertise in
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and contribute to the continued success of the
organization. These are the basis for the continued success
of the organization and will assist in gaining the
organization’s mission.

Weaknesses
 Weaknesses are factors that prevent an organization from
meeting its mission and achieving full potential. These
weaknesses hamper the organizational success and
growth.

Opportunities
 The environment within which our organization. Operates offers
opportunities. An organization can identify such opportunities
and enjoy benefit arising from them by planning and executing
required strategies
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Threats
 Threats are factors existing in the external environment that
jeopardize the profitability and reliability of the organization.
Such threats are uncontrollable and prove to be a risk to the
stability and survival of the organizations.
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What is PEST analysis?


PEST analysis is an analysis model examining the external
environment and the global factors that may affect a business.

It can provide a quick understanding of the external pressures


facing a business and their possible constraints on its strategy.

 It is usually divided into four external influences on a


business-political, economic, social and technological.
POLITICAL FACTOR
 Politicalz Factors measure the degree of political stability
and government intervention in economy.
.

ECONOMIC FACTOR
 Economic policies and factors have a great impact on
businesses and their expansion

SOCIAL FACTOR
 Social factors have a great impact on the buying patterns a
behaviors of a nation which is an important determinant for
businesses

TECHNOLOGICAL FACTOR

 Technological aspect includes factors like level of R&D,


automation, innovation and other related factors.

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