3. Environmental Analysis
This approach is also known as PEST analysis.
According to me, it really is not a stand-alone approach to strategy. This is because in environmental analysis, you analyse the environment using these subdivisions: Politicalt-legal factors, Economic factors, Socio-cultural factors and Technological factors (PEST factors).
In analysing these factors, you use SWOT analysis to determine any strengths, weaknesses, opportunities or threats arising from PEST factors. That is, use SWOT analysis to analyse PEST factors.
For example, in analysing Economic factors, look at the economic environment to ascertain any opportunities or threats. Areas that could be considered include inflation, trends in level of consumption, infrastructural support etc.
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