PEST Analysis is a great tool that helps you quickly adapt to the realities of the new environment while positioning your Microfinance Organization in the marketplace, branding your services, knowing your potential investment areas and in building some strategic plans of actions.
In our program, these are the areas we often used the PEST Analysis. However, since this tool is broad, we often argue on our approaches. Some of our decision makers go for the broader approach, that is, taking all these areas into one PEST Analysis. Others are comfortable in doing PEST Analysis in every specific areas like having specifically identified product or area of investment or specific market as ‘situation being analysed‘.
For me, I like doing PEST Anlaysis with the specifics. Aside from answering limited and specific questions, it is simplier to monitor and quantify the results. Either way, it all depends on your goals.
I will not be laboring myself formating here a template. There are a lot of examples on PEST Analysis in the internet like what I found in Marketing Minefield. All you have to do is make the examples as guide questions and answer them as specific as you can.
I would like only to add that above your PEST Analysis worksheets, you will put ‘Situation Being Analysed‘ like ‘Individual Approach Lending in Microfinance in Agoo, La Union, Philippines’.
Situation Being Analysed: Individual Approach Lending in Agoo, La Union, Philippines
From the above example, you have a specific service in ‘individual approach lending’ and specific area in ‘Agoo, La Union, Philippines’.
It is easier then to answer the guide questions on four factors (P E S T) because you have specific service and focused area to analyse.
Put all specific answers below the four factors, that is, Political, Economical, Social and Technology.
After having specific answers on all factors, draw some conclusions and divide these conclusions into advantages and disadvantages.
Repeat the process in every specific areas you want to analyse.
Just see to it that all people involved in the process arrived into consensus on the results. This consensus is very important during the implementation process if ever you decided to implement Individual Approach Lending in Microfinance at Agoo, La Union, Philippines (just taking the above example).
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