Accounting Pest Analysis Sample and Solution

Question: Describe about the development of a proper PEST Analysis template of an accounting firm. Answer: Factor Opportunity Threat Political The most significant point is to analyze the rules and regulations of the government. The second factor is to conclude about the government stability The political factor in the context is the external factors of the business, which cannot be controlled by the firm. Action of the government and political condition in the country affects the business in different manners. It must be a positive impact or a negative impact. It will help to spot business opportunities and personal opportunity It will help to avoid starting new projects which will bring negative impacts towards the firm It will bring different business opportunities to the economy. Sudden change in the government plans and procedures Change in the rules and regulations of the accounting structure and schedule Business can fall in downstream in the overall activities of the commerce. Economic Inflation can be defined as the sustain rate of increase in the price of the general goods and services. It hampers the entire circular flow of income in the economy. Deflation is the fall in the price of the goods and services in an economy due to the fall in the demand. It also hampers the circular flow of income as it experiences in lowering of the price in an economy. Employment Rate is defined as the measure to extend labor resources in the economy, it is calculated based on the working age population. The rate of unemployment dramatically hampers business. It decreases the efficiency of the business in the organization The firm will get benefited if the government maintains a steady rate in the interest structure as it will provide opportunities of loan Change in the interest rate structure will demoralize the form to go for credit, as is the ultimate option for expansion Socio-Cultural The income distribution of the system of the government Change in customers choice and trends Business does not exist in a vacuum environment. Social and cultural factors are the two integrated factors of the business, which brings both positive impact as well as negative impact in the business firm. If the economy maintains a strong and sustain level it will bring a positive impact in the income level of the people Major threat in the socio cultural factor of the PEST Analysis is population demographics Technological Technological advancement is moving at a rapid pace Technological factor will allow the organization to minimize the cost of the firm in daily operations A proper technological advancement will allow the firm to increase the overall efficiency. The financial firm will get benefited in certain ways and will help to increase the overall efficiency, productivity and profitability Sudden change in the technological advancement will bring different kinds of obsolesce PEST ANALYSIS of the Accounting Firm The concept of the situation analysis is one of the most crucial as well as well as significant part in order to determine the a proper situation analysis tool. I feel that the application of a proper situation analysis tool will guide the organization in different ways. The study will analyze the entire important factor, which are included towards the application of PEST Analysis. The four factors are political Economics, Social and technological (Adl, Ashouri Jamalpour, 2013). Getting Tired of Never-Ending Assignments? Hire an Expert from MyAssignmenthelp and Get the Necessary Assignment Help at a Reasonable Rate. The present firm in the study mainly deals in accounting and finance. Relevant regulations, government stability are the two important which I feel concludes the political analysis of the PEST Analysis (Collis, Holt Hussey, 2012). There are certain factors, which I feel the firm needs to conclude towards the development of the economic analysis. Inflation, employment rate, and deflation are the three key points, which needs to analyze in order to conclude about the environmental factor. The third element of this particular tool is to analyze the socio cultural factor (Gao, 2013). Population demographics and income distribution of the people are the important factors, which conclude the socio cultural factor in the financial firms. The last factor of the PEST Analysis tool is the technological factor. I feel it is one of the most significant factors in the entire tool. Technological advancement includes evolution of new technology and new technology transfer. External environment is the most important factor as compared with the internal environment (Shen Jiang, 2013). I feel that the PEST Analysis tools are very much useful in certain ways. It will help the firm to identify what are the various kinds of business opportunities as well as the personal opportunities, which will provide advance warning of some significant threats. Inflation and deflation are the two factors, which indicate both positive as well as negative demand; it hampers the entire circular follow of income in the economy and hampers the flow business. I feel that actions and the policy conditions of the country affects the decision making power of the business. There are certain advantages for the technological advancement of the business. I feel that it reduces the cost of the operations in the business. However, I will conclude about the employment rate in the economy. Frequent employee turnover will bring negative impact in the overall proceedings in the organizatio n. In order to complete this particular investigation procedure I have done many research works for the development of this particular template and will allow the readers to conclude its various kinds of advantages. Reference List Adl, A., Ashouri, M., Jamalpour, G. (2013).Overview SWOT Analysis Method and Its Application in Organizations Singaporean Journal of Business , Economics and Management Studies .- 2013 , Vol. 1 , No. 12 , pp. 69 - 74. Singapore: National Library Singapore. Bertelsen, B. (2012).Everything you need to know about SWOT analysis. [Newmarket, Ont.]: BrainMass Inc. Collis, J., Holt, A., Hussey, R. (2012).Business accounting. Houndmills, Basingstoke, Hampshire: Palgrave Macmillan. Gao, L. (2013). Resource Utilization of Digital Library in Full View Analysis of SWOT.AMM,427-429, 2104-2109. https://dx.doi.org/10.4028/www.scientific.net/amm.427-429.2104 Pride, W., Hughes, R., Kapoor, J. (2012).Business. Mason, OH: South-Western Cengage Learning. Shen, H., Jiang, Z. (2013). SWOT Analysis for Serviced Apartment Based on Information Technology.AMM,380-384, 2011-2015. https://dx.doi.org/10.4028/www.scientific.net/amm.380-384.2011