PEST Analysis

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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.

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.

Forum Forum discussions about PEST Analysis. Below you can ask a question about this topic, share your experiences, report a new development, or explain something. Start a new topic about PEST Analysis Share your knowledge here (or ask a question)   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 mechanism in financial sector in developed countries both by Government and public... 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 to be added - standing for Competitors / Competition. This would save organisati... 9   1 comments 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? Thi... 8   5 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 survive there is need to adapt to the external environment. Organisational leaders h... 6   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 we... 6   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.... 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 and to allow for cause-and-effect relationships between the segments. The result ... 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 management for external 'market' analysis?... 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 immediate response?... 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 and SPECTALES.... 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: social, economical, political, legal, etc. But at the end of these factor... 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 Environment (BENV) is COMPLEX and typically consists of factors, events, influences a... 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 energy, water, and technology development. How should the divisional head of Tech... 0

Best Practices The best, 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 that I can use. Of course I will use the PEST method, but that will only cover th... 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 opportunities and threats derive. Conducting PEST will be useful for SWOT analys... 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 the Social, Political, Economic, Legal, Intercultural and Technological aspects... 6   3 comments

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 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...

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 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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