PEST Analysis

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Summary

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.


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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 (...)
11
 
1 comments
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 (...)
9
 
1 comments
Advanced form of PEST: PESTELEM Analysis
An advanced form of PEST analysis is called PESTELEM
Political
Economic
Social
Technological
Ec (...)
8
 
2 comments
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 surv (...)
7
 
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 (...)
6
 
1 comments
PEST Analysis on Retail
Does anyone have a pest analysis on a retail industry. Thanks. (...)
5
 
1 comments
Improved PESTLE Analysis: SATERPLIDE Analysis
In my work I have found a need to improve the conventional PESTLE segmentation of the future to be more comprehensive a (...)
5
 
1 comments
Organisational Analysis
I would be grateful if I could be permitted to refer to the contents on this text. I will acknowledge the source. (...)
5
 
1 comments
Other Marketing Environment Tools
Apart from this PEST framework used to analyze the macro environment, which other technigues can be used? (...)
4
 
1 comments
🔥 NEW PEST Analysis for Non-Profit Organizations
Hi, I need opinions whether PEST analysis is the best tool to be used for public / non-profit organizations in marketing (...)
4
 
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 (...)
4
 
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 (...)
2
 
2 comments
Interaction Between an Organization and Its Energy Environment?
I read a text about organizational-environmental interaction and it has named factors affecting the interaction such as (...)
2
 
1 comments
What is a Business Environment
It is the aggregate of all conditions, events and influences that surround a firm and affect it.
The Business Envir (...)
1
 
Environmental Factors in PESTLE
In PESTLE, what are examples of typical environmental factors? Thank you. (...)
0
 
1 comments
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 (...)
0
 

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The top-rated 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? (...)
63
 
PEST Analysis for a Country
Does anyone know where I can get a PEST analysis on a country, such as the Czech Republic? (...)
35
 
4 comments

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 (...)
28
 
3 comments

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 (...)
17
 
3 comments

PEST Analysis Standard Format?
I have to do a PEST analysis. Is there a standard format (like SWOT). (...)
15
 
1 comments

BOOK: The SPELIT Power Matrix
The SPELIT Power Matrix is similar to PEST. It details how to internally and externally assess an organization utilizing (...)
6
 
3 comments

Expert Tips

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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
To think over which of the trends in the PEST analysis are going to be really important for a firm, one can use the 5 fo (...)

Advanced Ways of Applying PEST Analysis

Analysis of Macro-environment, Strategic Environment
When you are examining the external environment of a firm through a PEST Analysis, besides the obvious understanding of (...)

Extensive 12-Factor PEST Analysis

International Strategic Environmental Analysis
Marketing Consultant Geri Clark recommends a very comprehensive variant for International Marketing Environmental Analys (...)

WHEN to use PEST analysis? Situations and Application Areas

PEST Analysis, Application Areas, Analysis of Macro-environment
A PEST-analysis contributes to the success of a company, because any specific organization can only be successful it it (...)

How to Refine my Initial PEST Analysis?

Advanced PEST Analysis
A PEST analysis can further be refined by incorporating the SWOT framework for each of the dimension mentioned here, i.e (...)

Why Society is More Risky than Before

Understanding New Risk Categories, Risk Management
In his 1992 book "Risk Society: Towards a New Modernity”, Ulrich Beck describes new risk scenarios that companies have t (...)

Government Policies / Economic Policy Tools in PEST Analysis

PEST Analysis, Government Analysis, Analysis of Macro-environment, Strategic Environment
Governments use several economic policy tools to achieve a set of goals. Managers of industry must have their focus on o (...)
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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
MS-Excel template for conducting a PEST Analysis for your business or (part of) your organization. (...)

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

External Environment, Environmental Scanning, Environmental Management, Competitive Environment
This presentation covers the topic of external environments and includes the following sections: 1. Environmental Scann (...)

PEST Analysis for Small and Medium-sized Companies

Initial Understanding of PEST Analysis, Summary
Ian Johnson summarizes the PEST Framework in the context of Small and Medium-sized Companies. PEST is an acronym to ana (...)

Introduction of the P of PEST Analysis: Political

Initial Understanding of PEST Analysis
Short introduction to the P of PEST Analysis: - Political - Regulatory - Legislative The video gives examples in the (...)

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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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