SWOT versus PEST Analysis

Today strategic planning tools have jumped the barriers of their connoisseurs to be applied by all those people who have an organization or industry, in order that they contribute to the achievement of its objectives, thus achieving to be able to consolidate in goals.

There are two tools that allow an organization to be approached comprehensively and analyzed from different perspectives, such as the tool SWOT (more information here: SWOT: Matrix or SWOT Analysis - A fundamental tool.), this is constituted in the internal and external analysis of the company, in order to make an evaluation of its elements that allow it the optimal development of its commercial activities, and the study of those circumstances that may have a not so positive effect on it.

While for a few decades now, the development of a very useful tool has been implemented that obeys the study of the organization in an integral way, combining both its components and its vision within a whole, it is about the

PEST tool, it conceives the comprehensive analysis of the company in all its aspects and relationships both between its departments and with external circumstances.

This tool allows us to divide reality into four highly relevant aspects that configure every company, in the political, economic, social and technological aspect, this in order to evaluate every area from these different prospects.

Both tools are very useful for:

• The perception of the positive aspects of the organization evaluating its internal components, in order to determine the benefit that each one Equally grants the organization the evaluation of the external environment regarding the aspects that can positively influence the dynamics business.

Such is the case, of evaluating the human resources department as the strength of the company, and the commercial alloys that can be carry out with another company that contributes to the development of skills in employees, both establishing a win-win relationship.

• Both also allow the evaluation of the negative aspects of any company, such as those areas that exist but have not received due attention or endowment, as a result of external conditions that have influenced, as is the case of the economy as fickle.

Similarly, it allows the conception of weaknesses in a framework of external aspects, which cause damage to the productive dynamics of the same company.