According to Lorat PEST (Political, Economical, Social, Technological) analysis can be considered as a strategic management tool providing a comprehensive framework for analyzing the environmental pressures on business in a given geographical region. PEST analysis is an external analysis of the macro-environment where the business operates. Lorat argues that business entities are organizations that adopt an open structure. The open structure makes them vulnerable to influences from external environmental forces. The external influences are factors that are beyond the control of a business organization or a country. However, it is important that the business organization or the country becomes aware of these influences so that they can align them with their business strategy. The main objective of carrying out a PEST analysis is to understand the effect of these influences on the business or the trade policy so that they can inform government policies on business. Before starting a business in a given country, is imperative to carry out a comprehensive PEST analysis to ascertain the chances of success or failure of the new venture.