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:
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Political
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Economic
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Social
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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)
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Economic
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Social
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Technological
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Environmental regulations
and protection
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Economic growth
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Income distribution
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Government research spending
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Tax policies
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Interest rates & monetary
policies
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Demographics, Population
growth rates, Age distribution
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Industry focus on technological
effort
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International trade regulations
and restrictions
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Government spending
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Labor / social mobility
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New inventions and development
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Contract enforcement law
Consumer protection
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Unemployment policy
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Lifestyle changes
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Rate of technology transfer
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Employment laws
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Taxation
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Work/career and leisure
attitudes
Entrepreneurial spirit
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Life cycle and speed of
technological obsolescence
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Government organization
/ attitude
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Exchange rates
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Education
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Energy use and costs
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Competition regulation
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Inflation rates
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Fashion, hypes
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(Changes in) Information
Technology
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Political Stability
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Stage of the business cycle
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Health consciousness &
welfare, feelings on safety
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(Changes in) Internet
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Safety regulations
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Consumer confidence
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Living conditions
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(Changes in) Mobile Technology
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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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 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 and to allow for cause-and-effect relationships between the segments. The result is record...
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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 Environment (BENV) is COMPLEX and typically consists of factors, events, influences and conditions arising from different sources.
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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 energy, water, and technology development. How should the divisional head of Technology Marketing and Economic analysis go about se...
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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 to how I should perform a PEST analysis. Any other practical tips are also welcome......
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BOOK: The SPELIT Power Matrix
'The SPELIT Power Matrix: Untangling The Organizational Environment With The SPELIT Leadership Tool' by Leo A. Malette is a book available on |
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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
Ethical
Media
Now what is the difference? This kind of PEST is more accurate and offers more di...
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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 immediate response?...
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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 that I can use. Of course I will use the PEST method, but that will only cover the macro environment. Does anyone know a model or m...
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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 to be added - standing for Competitors / Competition. This would save organisations from the need to do a benchmarking exer...
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Direct and Indirect 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 there is need to adapt to the external environment. Organisational leaders have to closely monitor developments in the busines...
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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 opportunities and threats derive. Conducting PEST will be useful for SWOT analysis....
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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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PEST Analysis Special Interest Group
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PEST Analysis Education & Events
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How to Analyze the Strategic Significance of some External Trend?
To think over which of the trends in the PEST analysis are going to be really important for a firm, one can use the
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Advanced Ways of Applying PEST Analysis
When you are examining the external environment of a firm through a PEST Analysis, besides the obvious understanding of the
- CURRENT STATUS of t...
Usage (application): Analysis of Macro-environment, Strategic Environment
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Extensive 12-Factor PEST Analysis
Marketing Consultant Geri Clark recommends a very comprehensive variant for International Marketing Environmental Analysis: the HELPS FREDICT framewor...
Usage (application): International Strategic Environmental Analysis
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WHEN to use PEST analysis? Situations and Application Areas
A PEST-analysis contributes to the success of a company, because any specific organization can only be successful it it has a good understandin...
Usage (application): PEST Analysis, Application Areas, Analysis of Macro-environment
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How to Refine my Initial PEST Analysis?
A PEST analysis can further be refined by incorporating the SWOT framework for each of the dimension mentioned here, i.e.: P, E, S and T."...
Usage (application): Advanced PEST Analysis
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Why Society is More Risky than Before
In his 1992 book "
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Government Policies / Economic Policy Tools in PEST Analysis
Governments use several economic policy tools to achieve a set of goals. Managers of industry must have their focus on on these policies so as to ensu...
Usage (application): PEST Analysis, Government Analysis, Analysis of Macro-environment, Strategic Environment
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PEST Analysis Template
MS-Excel template for conducting a PEST Analysis for your business or (part of) your organization....
Usage (application): PEST Analysis
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External Environment In-depth: Sub-types and How to Manage Them
This presentation covers the topic of external environments and includes the following sections:
1. Environmental Scanning and Environmental Mana...
Usage (application): External Environment, Environmental Scanning, Environmental Management, Competitive Environment
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PEST Analysis for Small and Medium-sized Companies
Ian Johnson summarizes the PEST Framework in the context of Small and Medium-sized Companies.
PEST is an acronym to analyze the strategic environ...
Usage (application): Initial Understanding of PEST Analysis, Summary
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Introduction of the P of PEST Analysis: Political
Short introduction to the P of PEST Analysis:
- Political
- Regulatory
- Legislative
The video gives examples in the health care i...
Usage (application): Initial Understanding of PEST Analysis
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News
Pest Analysis
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News
Macro-environment Analysis
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Videos
Pest Analysis
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Videos
Macro-environment Analysis
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Presentations
Pest Analysis
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Presentations
Macro-environment Analysis
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More
Pest Analysis
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More
Macro-environment Analysis
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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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