Which of the following is NOT a focus of PEST analysis?

PEST analysis is a strategic management tool used to assess the external environment in which an organization operates. It focuses on four key dimensions: Political, Economic, Social, and Technological factors. Each of these dimensions helps organizations understand the broader context affecting their operations and strategic decisions.

The reason that environmental regulations are not a focus of PEST analysis is that they fall more under the domain of specific regulatory or compliance considerations rather than being part of the overarching categories of political, economic, and social influences. While environmental factors and sustainability may indeed influence strategic planning, they are typically dealt with in a different framework, such as the PESTLE analysis, which includes Legal and Environmental considerations in addition to the standard PEST categories.

By concentrating on Political, Economic, and Social factors, PEST analysis provides insights into the general market dynamics and societal trends that can impact an organization’s strategy, but it does not specifically address the regulatory frameworks related to environmental regulations. This distinction is vital for understanding the analytical approach of PEST and similar strategic assessment tools.