Question

Why is it important to use SWOT and PEST analysis for your business? How will you use the feedback for the analysis to make your business successful?

Answer 1

SWOT(Strengths, Weaknesses, Opportunities, Threats)

PEST(Political, Economic, Sociological, Technological)

SWOT analysis by its name suggests internal and external factors that are affecting the business. this analysis will help the business to understand their strengths and weakness and then helps to get more opportunities to expand the business..Likewise, PEST analysis is also used to evaluate the external factors which are affecting the overall business, ie how political parties and all are affecting the operations and then social, economic, technological factors are affecting the business and the customers. here it only deals with external factors while SWOT comprises internal as well as external factors. for analyzing the decisions they have taken, for getting an objective as well as the subjective look of the business, operations, and the outside world, etc, how the market reacts to the products, how stock market operations are going on, etc

For getting maximum profits and wealth a business should clearly identify and analyze all the factors which they are ging to affect the business. Without proper analysis of these factors, a business cant operates much,so for these, SWOT and PEST analysis is applying.

Its better to do PEST analysis first,because it includes external factors and checks how these factors will chabge or gonna affect the business ,after analysing the outside business do the SWOT analysis, Because SWOT analysis includes internal factors.So the result of PEST analysis can be used for internal analysis,i will helps to get the weakness of business by comparing it with ouside market conditions.