PEST Analysis

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Summary, forum, best practices, expert tips and information sources.

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)




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


Work/career and leisure attitudes

Entrepreneurial spirit

Life cycle and speed of technological obsolescence

Government organization / attitude

Exchange rates


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 Special Interest Group.

Special Interest Group (400 members)


Forum about PEST Analysis.

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Interaction Between an Organization and Its Energy Environment?
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Best Practices

The top-rated discussion topics about PEST Analysis. Here you will find the most valuable ideas and practical suggestions.

🥇 PEST / PESTLE Criticisms
What are some of the criticisms of the PESTEL Analysis? (...)
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🥈 PEST Analysis for a Country
Does anyone know where I can get a PEST analysis on a country, such as the Czech Republic? (...)
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🥉 External Environment of a Service Company
I need to examine the external environment of a recruitment company (for my dissertation), and I'm looking for a model t (...)
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PEST Analysis is Complementary to SWOT Analysis
PEST is one of the essential tool to supplement the SWOT analysis. PEST is the external environmental analysis in which (...)
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PEST Analysis Standard Format?
I have to do a PEST analysis. Is there a standard format (like SWOT). (...)
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System Risk in PEST Analysis
As per recent global recession, how do you include in PEST analysis the risk factor due to mass negligence of control me (...)
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Extension of PESTEL + C (=Competitors) Analysis
In discussions with a tutor at Deltic Training College (Mark Northway), it has been suggested that a 'C' should / ought (...)
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Advanced form of PEST: PESTELEM Analysis
An advanced form of PEST analysis is called PESTELEM Political Economic Social Technological Ecological Legal Eth (...)
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Direct and Indirect External Environment of the Firm
What is needed to survive in dynamic environment.The world is fast changing and as such if organisations are to survive (...)
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BOOK: The SPELIT Power Matrix
The SPELIT Power Matrix is similar to PEST. It details how to internally and externally assess an organization utilizing (...)
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How to Conduct a PEST Analysis? Main Steps and Tips
Is there a specific way in performing a PEST analysis, or is there no particular order? I really want a guideline as t (...)
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PEST Analysis on Retail
Does anyone have a pest analysis on a retail industry. Thanks. (...)
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Organisational Analysis
I would be grateful if I could be permitted to refer to the contents on this text. I will acknowledge the source. (...)
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Other Marketing Environment Tools
Apart from this PEST framework used to analyze the macro environment, which other technigues can be used? (...)
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Unfavorable External Environment?
When do I realize that the environment I am operating in is not favorable to my organization? And what should be the imm (...)
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History of PEST - Origins and Author
I am wondering about the origins of PEST. And also about the authorship of the various variants such as: PESTEL, PECLICT (...)
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What is a Business Environment
It is the aggregate of all conditions, events and influences that surround a firm and affect it. The Business Environme (...)
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Environmental Factors in PESTLE
In PESTLE, what are examples of typical environmental factors? Thank you. (...)
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Technology Marketing and Economic Analysis in Utilities
A small developing economy creates a new government funded R&D company to streamline and consolidate efforts in R&D on e (...)
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Expert Tips

Advanced insights about PEST Analysis. Here you will find professional advices by experts.

How to Analyze the Strategic Significance of some External Trend?

Analysis of Macro-environment, Strategic Environment (...)

Advanced Ways of Applying PEST Analysis

Analysis of Macro-environment, Strategic Environment (...)

Extensive 12-Factor PEST Analysis

International Strategic Environmental Analysis (...)

WHEN to use PEST analysis? Situations and Application Areas

PEST Analysis, Application Areas, Analysis of Macro-environment (...)

How to Refine my Initial PEST Analysis?

Advanced PEST Analysis (...)

Why Society is More Risky than Before

Understanding New Risk Categories, Risk Management (...)

Government Policies / Economic Policy Tools in PEST Analysis

PEST Analysis, Government Analysis, Analysis of Macro-environment, Strategic Environment (...)
Information Sources

Various sources of information regarding PEST Analysis. Here you will find powerpoints, videos, news, etc. to use in your own lectures and workshops.

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

Initial Understanding of PEST 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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