Which of the following is considered a 'PEST' factor?

• A. Market competition
• B. Economic conditions
• C. Internal company culture
• D. Product features

Answer: (B)

A 'PEST' factor refers to the key categories of external influences that impact an organization, specifically Political, Economic, Social, and Technological factors. Among these categories, Economic conditions encompass aspects such as inflation rates, interest rates, economic growth, and overall economic stability. These conditions can significantly influence a business's operations, strategies, and decision-making, affecting everything from pricing strategies to investment plans.

In contrast, market competition relates to the competitive landscape within an industry and is not categorized under 'PEST' factors but rather within a different analysis framework known as 'Porter's Five Forces'. Internal company culture pertains to the internal dynamics and values of an organization, which indicates it is also outside the scope of 'PEST' factors, focusing more on internal rather than external elements. Lastly, product features describe the characteristics and specifications of a product, which are also internal matters related to the organization's offerings rather than external influences. Thus, Economic conditions align directly with the PEST analysis framework, making it the correct choice.