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hello and welcome to todays lesson where were looking at pest analysis or PESTEL analysis which is a tool that can help you understand the macro environment in which an organization functions next suppose a company is considering two options should it develop a new product or should it expand into a new country how would a company decide which opportunity is the right one to pursue where would you even start in answering this kind of big strategic question well a pest analysis can be a useful tool in answering these big strategic questions now pest is an acronym standing for political economic social and technological and sometimes youll see it referred to as PESTEL analysis which is essentially the same analysis but where you add legal and environmental factors now how pass provides a view of the different macro economic issues that might affect an organization and the idea is that by understanding whats changing in the world around you you will be better able to make good strate