There are many analyzes used in business analysis, such as SWOT analysis, PORTER's 5 forces, value chain and many more. It is also used for PEST analysis which is one of the company analyses. PEST analysis is a simple and effective tool used in situation analysis to identify in terms of external forces that could influence an organization. These forces can create both opportunities and threats for an organization. Therefore, the purpose of doing PEST is to: • Discover the current external factors influencing an organization; • Identify external factors that may change in the future; • Exploit changes (opportunities) or defend against them (threats) better than competitors. The result of PEST is an understanding of the big picture surrounding the company. PEST analysis is also performed to evaluate the potential of a new market or as a beginner in the market. The general rule is that the more negative forces influence that market, the more difficult it is to do business in it. The difficulties that will have to be faced significantly reduce the profit potential and the company may simply decide not to undertake any activity in that market. PEST is a mnemonic that in its extended form denotes P for Political, E for Economic, S for Social and T for Technological. It provides a bird's eye view of the entire environment from many different angles that you want to check and track while contemplating a certain idea or plan.1. PoliticalThese factors determine the extent to which a government can influence the economy or a particular sector. For example, a government may impose a new tax or duty due to which the entire revenue generating structure of organizations may change. Political factors include fiscal policy...... middle of paper ...... logistics is a term borrowed from the military environment where it is also used fashionably in the same sense. Instead of taxes and local prices, shipping is also important in political analysis. It is to be able to operate smoothly in the market; e-tailers must have high knowledge of political sites. For example, to ensure that the operation is successful, you need to worry about the transportation part or costs. E-tailers have to worry about shipping due to the area or geography of the target market. If they really want to grow the business in a particular area, they need to be responsible for the surrounding area. For example, if the areas are distant from each other and also from residents or from any structures and connections, obviously the construction costs are higher than in the area where the necessary structures already exist.