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Companies need to understand their ability to compete and the environment in which they must compete. Of the strategy planning tools they have available, the PEST (political, economic, sociocultural, and technology) analysis has been shown to be very effective. Do you believe that companies who have a planning culture and use planning tools, such as the PEST analysis, can perform better in the long run than their industry competitors who may not use similar planning tools? Why, or why not?
ANSWER THE ABOVE DISCUSSION AND THEN REPLY TO MY CLASSMATE’S RESPONSE TO THE ABOVE QUESTIONS AND EXPLAIN WHY YOU AGREE? (A MINIMUM OF 125 WORDS EACH DISCUSSION)
CLASSMATE’S POST
I absolutely agree that using a tool like the PEST analysis can be beneficial to an organization. This year, we have seen many companies shut down due to the pandemic, which impacted organizations on an economic level. We also saw some business flourish because they were able to see what was needed in the world, and with some changes to their operation, they were able to provide a very in demand product like hand sanitizer. We saw this in the micro-breweries around the country.
Using tools like a PEST analysis gives business a lead on how they may need to change or adapt to what is going on around them in order to stay in business. This has a positive impact on employees and customers.
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