INTRODUCTION In this unit we review another useful tool for strategic managers.

INTRODUCTION
In this unit we review another useful tool for strategic managers. PEST stands for the Political, Economic, Social, and Technological factors that are evaluated in this type of external analysis. The PEST further refines external factors identified through the SWOT. A PEST can be further developed through the use of generic questions. Not all of these questions apply to every organization, but they are a good starting point for determining relevant factors.
There are many ways to analyze a system and develop a strategic plan. In this phase, the financial situation of your firm must be taken into account. For example, if your firm wants to grow, this usually involves additional investment of capital. If your firm does not have the cash or the means to raise money to spend, then the goal may be dead in its tracks. We will explore three success factors in this unit: Suitability, Feasibility, and Acceptability.
READING ASSIGNMENT
Johnsohn.dk (2019). Strategy evaluation SFA –Analysis. https://johnsohn.dk/2019/08/03/strategy-evaluation-sfa-analysis/
Frue, L. (2017, November 7). 14 critical questions to ask in PEST analysis. https://pestleanalysis.com/14-critical-questions-ask-pest-analysis/
OpenLearn. (n.d.). 3.1 Questions to ask during the PEST analysis. https://www.open.edu/openlearn/ocw/mod/oucontent/view.php?id=64017§ion=3.1
Optional Video
Schoemaker, P. (2018, Dec 12). Choosing your marketing strategy: SFA Matrix of Johnsons & Scholes explained. [Video]. YouTube. https://youtu.be/dXt-KhSpw9Y
DISCUSSION ASSIGNMENT
Review the material on Johnson and Scholes Suitability, Feasibility, and Acceptability (SFA) Model.
Then, engage in a dialogue with your classmates by answering the following questions:
1. How do you use the Johnson & Scholes framework to determine the optimal strategy choice?
2. How do we know an organization has made the optimal choice? What financial metrics might help to evaluate an optimal choice?
3. Describe a time an organization did not make an optimal choice. Using the Johnson & Scholes framework, how might the firm have improved its process?
Your Discussion should be at least 250 words in length, but not more than 750 words. Use APA citations and references for the textbook and any other sources used.
You are expected to make at least three posts to the discussion forum during the course of the discussion period.
WRITTEN ASSIGNMENT
Pick any organization you are familiar with and perform a PEST analysis. From the readings this week, reflect on the list of key questions to help you develop a PEST analysis.
How would your answer change if there were (1) a sudden advancement in technology, (2) social unrest, and (3) enhanced economic stability? Being specific, how would you determine the optimal strategy for the organization?
Prepare a two page (double-spaced) essay. The paper should be 12-point font, Times New Roman, be at least 500 words, and include a final source list.
LEARNING JOURNAL
Students should document their activities, record problems they may have encountered and draft answers for Discussion Forums and Assignments. In addition, the student should consider the following questions for reflection:
Suppose you wanted to start a company where you live. Which of the PEST factors would be the strongest? How would you evaluate the optimal strategy?