Page 52 - SKU-000506274_TEXT.indd

Social analysis

n What are the social conditions in all the markets that we serve?
n What opportunities or threats do they suggest?
n Have we integrated these into our strategic thinking?

Technological analysis

n What are the likely technological developments?
n How can we best exploit these at lowest cost?

Legislation

n What legislation is probable in each of the key markets where we
operate?

n How could such legislation affect us?

The downside

Most organizations, if they complete a PEST analysis at all, look to avoid
trouble. That makes sense. But it is not the end of the story. Nor is it nec-
essarily the most important reason for getting complete answers to all
questions.

n Does it suggest any threats or weaknesses of which we have taken
insufficient note?

n Do we need to adjust our strategic contingency and avoidance
plans?

The upside

In all situations it should be nothing less than a well-practised habit to
look for areas of competitive advantage. The effective businessperson will
look at all situations with one question firmly in mind.

n Does anything that I have learned suggest an additional area of
competitive advantage that we need to plan to exploit?

And since advantage without action is meaningless:
n Do we need to draw matters to the attention of divisions/
departments to ensure that tactical plans will best reflect the
advantageous and disadvantageous factors in each market?

The big picture 21