PEST Analysis

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Scanning the external macro-environment in which a firm operates. Explanation of PEST Analysis. STEEPLE.


What is PEST analysis? Description

The PEST analysis is a framework that strategy consultants use to scan the external macro-environment in which a firm operates. PEST is an acronym for the following factors:

  • Political

  • Economic

  • Social

  • Technological

PEST factors play an important role in the value creation opportunities of a strategy. However they are usually outside the control of the corporation and must normally be considered as either threats or opportunities. Remember macro-economical factors can differ per continent, country or even region, so normally a PEST analysis should be performed per country.


In the table below you find examples of each of these factors.

Political (incl. Legal)


Economic


Social


Technological


Environmental regulations and protection

Economic growth

Income distribution

Government research spending

Tax policies

Interest rates & monetary policies

Demographics, Population growth rates, Age distribution

Industry focus on technological effort

International trade regulations and restrictions

Government spending

Labor / social mobility

New inventions and development

Contract enforcement law

Consumer protection

Unemployment policy

Lifestyle changes

Rate of technology transfer

Employment laws

Taxation

Work/career and leisure attitudes

Entrepreneurial spirit

Life cycle and speed of technological obsolescence

Government organization / attitude

Exchange rates

Education

Energy use and costs

Competition regulation

Inflation rates

Fashion, hypes

(Changes in) Information Technology

Political Stability

Stage of the business cycle

Health consciousness & welfare, feelings on safety

(Changes in) Internet

Safety regulations

Consumer confidence

Living conditions

(Changes in) Mobile Technology


 

Completing a PEST Analysis is relatively simple, and can be done via workshops using brainstorming techniques. Usage of PEST analysis can vary from: company and strategic planning, marketing planning, business and product development, and research reports.


Variants of PEST Analysis

Sometimes extended forms are used, such as SLEPT Analysis (plus Legal) or the STEEPLE Analysis: Social/demographic, Technological, Economic, Environmental (natural), Political, Legal and Ethical factors. Also Geographical factors may be significant.


Special Interest Group - PEST Analysis


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Forum - PEST Analysis  

In this forum you will find recent interesting discussions.


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Best Practices - PEST Analysis

Here you will find the most valuable discussions from the past.


  Extension of PESTEL + C (=Competitors) Analysis (1 reactions)
In discussions with a tutor at Deltic Training College (Mark...
 
 
 
 

Expert Tips - PEST Analysis

Here you will find high-quality advice from experts.


 

How to Analyze the Strategic Significance of some External Trend?

Analysis of Macro-environment, Strategic Environment...
 
 
 

Advanced Ways of Applying PEST Analysis

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Extensive 12-Factor PEST Analysis

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WHEN to use PEST analysis? Situations and Application Areas

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How to Refine my Initial PEST Analysis?

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Why Society is More Risky than Before

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Government Policies / Economic Policy Tools in PEST Analysis

PEST Analysis, Government Analysis, Analysis of Macro-environment, Strategic Environment...
 
 

Resources - PEST Analysis

Here you will find powerpoint presentations, micro-learning videos and further information sources.


PEST Analysis Template

PEST Analysis...
 

External Environment In-depth: Sub-types and How to Manage Them

External Environment, Environmental Scanning, Environmental Management, Competitive Environment...
 

PEST Analysis for Small and Medium-sized Companies

Initial Understanding of PEST Analysis, Summary...
 

Introduction of the P of PEST Analysis: Political

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News about Pest Analysis


     
 

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Videos about Pest Analysis


     
 

Videos about Macro-environment Analysis


     
 

Presentations about Pest Analysis


     
 

Presentations about Macro-environment Analysis


     
 

Books about Pest Analysis


     
 

Books about Macro-environment Analysis


     
 

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More about Macro-environment Analysis


     

Compare with: SWOT Analysis  |  OODA Loop  |  Simulation  |  Five Competitive Forces  |  Stakeholder Analysis  |  Stakeholder Mapping  |  Benchmarking  |  Scenario Planning  |  Diamond Model  |  Strategic Risk Management


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