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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Here you will find interesting and educational discussions.
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Here you will find the most valuable ideas.
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Here you will find high-quality advice from experts.
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How to Analyze the Strategic Significance of some External Trend?
Analysis of Macro-environment, Strategic Environment...
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Advanced Ways of Applying PEST Analysis
Analysis of Macro-environment, Strategic Environment...
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Extensive 12-Factor PEST Analysis
International Strategic Environmental Analysis...
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WHEN to use PEST analysis? Situations and Application Areas
PEST Analysis, Application Areas, Analysis of Macro-environment...
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How to Refine my Initial PEST Analysis?
Advanced PEST Analysis...
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Why Society is More Risky than Before
Understanding New Risk Categories, Risk Management...
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Government Policies / Economic Policy Tools in PEST Analysis
PEST Analysis, Government Analysis, Analysis of Macro-environment, Strategic Environment...
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Here you will find powerpoint presentations, micro-learning videos and further information sources.
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PEST Analysis Template
PEST Analysis...
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External Environment In-depth: Sub-types and How to Manage Them
External Environment, Environmental Scanning, Environmental Management, Competitive Environment...
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PEST Analysis for Small and Medium-sized Companies
Initial Understanding of PEST Analysis, Summary...
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Introduction of the P of PEST Analysis: Political
Initial Understanding of PEST Analysis...
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News about Pest Analysis
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News about Macro-environment Analysis
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Videos about Pest Analysis
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Videos about Macro-environment Analysis
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Presentations about Pest Analysis
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Presentations about Macro-environment Analysis
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Books about Pest Analysis
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Books about Macro-environment Analysis
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More about Pest Analysis
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More about 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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