Strategic business planning involes two types of analysis of an organisation.SWOT analysis check internal factors and PEST analysis identify external factors.
Strengths – Find out the existing strengths and competitive advantages of organisation.
Weaknesses – identify existing weaknesses in functional areas.
Opportunities – Estimate the opportunities and growth potential in the target market.
Threats – Calculate prevailing threats to the business growth.
Political: Identify the impact of local, national and international political conditions.Stability of a government,regulatory framework and taxation are part of political factors.
Economic: Changes in Economic and industry growth rate might affect the company’s future.Some major economic factors are Annual Budget ,Inflation, stability of rupee , Export and import policies and purchasing power of the public.
Social: Social factors include age,sex,education, standard of living, culture etc.These factor determine consumer trends and business environment.
Technological: World is fastly changing with technology innovation in the field of communication and business process.A company must avoid outdated technology with a focus on research and development.