Page 6: Conclusion
A PEST analysis is a useful technique for reviewing the external forces that impact on an organisation. The technique offers a structured basis for reviewing the organisation's strategic direction and for considering future priorities.
In the case of the Highways Agency, as a government agency, political factors play a key role in shaping its activities and priorities. It acts in the public interest, has priorities shaped by government targets and is accountable to Parliament. Economic factors influence its spending decisions, social factors shape the demand for the Agency's services and technological developments can offer innovative solutions to some of the challenges in managing a modern road network. By understanding these factors in the external environment, the Highways Agency can shape its activities appropriately. This is reflected in the current programme of 'managed motorways' which brings together many of the innovations to maximise use of the current infrastructure.