The Difference Between SWOT and PEST

The Difference Between SWOT and PEST

PEST stands for "political, environmental, social, technological" and SWOT stands for "strengths, weaknesses, opportunities and threats." Combining the two strategies is what most leaders use to effectively deal with threats and make the most of opportunities

Business models provide the information that is required for all organizations to run efficiently, with great success. Two of the most well regarded methods for examining and understanding a business is through the use of a SWOT and a PEST analysis.

The SWOT analysis also considers external factors, such as the PEST system. In this way of thinking, there are no right answers. The dynamics among the internal and external environments change constantly and influence each other continuously across time. The PEST consists of four components: political, economic, social, and technological. the SWOT is related to a person’s strength what they have in one hand and their weakness the other hand. And PEST is somehow the same but with emotional side of things by using people as a part of this equation.

The strengths, weaknesses, opportunities and threats (SWOT) model has been around for over thirty years and it was originally published in 1979 by Ernst & Whinney Consulting Group. The analysis determines whether an organization is equipped to grow their market share via marketing campaigns.

A PESTEL (political, environment & economy, social factors & beliefs, technological issues & innovations) analysis is more data-oriented and together they can offer valuable insights when looking at a specific organization's current situation as well as future growth opportunities. Smart leaders are always looking at more than one method in order to make informed decisions that capitalize on any strengths and improve any weaknesses. the PEST oversimplifies matters by lumping together disparate issues that are really very intricately interconnected in reality. Its analysis is two-dimensional where it must be multidimensional because choices in one area affect decisions in other sections (economy for example).

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