Analysis of market environment factors of an economic entity

Abstract

Importance: аt the current stage of economic development, economic entities, despite possessing significant production, technological, financial, intellectual, and informational potential, are unable to balance their internal capabilities in the face of fluctuating demand in a functioning market. Economic analysis tools help identify key areas for strengthening an economic entity’s activities in an aggressive external environment, substantiate the strengths and weaknesses of a business, and the external factors influencing the organization’s operations and competitiveness. Purpose: to understand the structure and specifics of an economic entity’s business, a comprehensive assessment of the external macroeconomic environment is necessary. A detailed analysis of the factors influencing its changes is needed to determine the direction for exploiting opportunities and minimizing threats arising from their impact on the business. Research design: at the current stage of economic development, priority is given to information generated by the internal environment of the economic entity. The degree of influence of macroenvironmental factors on the activities of various organizations varies, due to differences in their field of activity and the level of their economic and market potential. This increases the importance of adjusting market environment factors in the context of a highly dynamic operating environment for economic entities. Results: the use of PEST analysis tools covers the forecast period for the development of an economic entity and allows for updating its content as the impact of macroeconomic factors changes. The use of internal sources of information for analyzing the market environment of an economic entity is possible due to their general availability. Detailing the factors of the macroenvironment of an economic entity through the use of PEST analysis tools contributes to the quality of its results.