In analyzing the macro-environment, it is important to identify factors which could in turn affect a number of vital variables which may influence the levels of supply and demand of the organization as well as its costs (Kotter and Schlesinger, 1991; Johnson and Scholes, 1993). The “radical and continuous changes occurring in society create an uncertain environment and impact the functioning of the entire organization” (Tsiakkiros, 2002). A number of checklists have been developed to list the large number of possible problems that can affect an industry. A PEST analysis is one of these and is simply a framework that categorizes environmental influences into political, economic, social and technological forces. Sometimes two additional factors, environmental and legal, will be added to complete a PESTEL analysis, but these themes can easily be subsumed into the others. The analysis examines the impact of each of these factors (and their interactions with each other) on the business. The results can then be used to take advantage of opportunities and develop contingency plans for threats when preparing business and strategic plans (Byars, 1991; Cooper, 2000). Kotler (1998) states that PEST analysis is a useful strategic tool for understanding the market. growth or decline, business situation, potential and direction of operations. The PEST rubrics provide a framework for examining a situation and can, in addition to the SWOT and Porter's Five Forces models, be applied by businesses to examine a strategic direction, including a marketing proposal. The use of PEST analysis can be considered effective for business and strategic planning, marketing planning, business and product development, and research reporting. PEST also ensures that business performance aligns positively with the powerful forces of change affecting the business environment (Porter, 1985). PEST is useful when a company decides to expand its business operations into new markets and countries. The use of PEST, in this case, helps to free oneself from unconscious assumptions and adapt effectively to the realities of the new environment. Main Aspects of PEST Analysis Economic conditions affect the ease or difficulty of succeeding and becoming profitable at any time, as they affect both the availability and cost of capital, as well as demand (Thompson, 2002) . If demand is in favor of buyouts, for example, and the cost of capital is low, it will be attractive for companies to invest and expand in the hope of being profitable. In opposite circumstances, companies might find that profitability across the industry is low..