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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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 anal...
Usage (application): Analysis of Macro-environment, Strategic Environment
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Advanced Ways of Applying PEST Analysis
When you are examining the external environment of...
Usage (application): Analysis of Macro-environment, Strategic Environment
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Extensive 12-Factor PEST Analysis
Marketing Consultant Geri Clark recommends a very ...
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 ...
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 incorpor...
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 a...
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 f...
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 env...
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 c...
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:
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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
Return to Management Hub: Finance & Investing | Knowledge & Intangibles |
Marketing | Strategy
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