PEST Analysis

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Scanning the external macro-environment in which a firm operates. Explanation of PEST Analysis. STEEPLE.


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.


Special Interest Group - PEST Analysis


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Forum - PEST Analysis  

Discussions about PEST Analysis.


  PEST / PESTLE Criticisms
What are some of the criticisms of the PESTEL Analysis? (...)
 
 
 
 
  PEST Analysis for a Country
Does anyone know where I can get a PEST analysis on a country, such as the Czech Republic? (...)
 
 
 
 
  External Environment of a Service Company
I need to examine the external environment of a recruitment company (for my dissertation), and I'm l (...)
 
 
 
 
  PEST Analysis is Complementary to SWOT Analysis
PEST is one of the essential tool to supplement the SWOT analysis. PEST is the external environmenta (...)
 
 
 
 
  PEST Analysis Standard Format?
I have to do a PEST analysis. Is there a standard format (like SWOT). (...)
 
 
 
 
  System Risk in PEST Analysis
As per recent global recession, how do you include in PEST analysis the risk factor due to mass negl (...)
 
 
 
 
  Advanced form of PEST: PESTELEM Analysis
An advanced form of PEST analysis is called PESTELEM Political Economic Social Technological Ec (...)
 
 
 
 
  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 organisat (...)
 
 
 
 
  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 w (...)
 
 
 
 
  BOOK: The SPELIT Power Matrix
The SPELIT Power Matrixis similar to PEST. It details how to internally and externally assess an org (...)
 
 
 
 
  PEST Analysis on Retail
Does anyone have a pest analysis on a retail industry. Thanks. (...)
 
 
 
 
  Organisational Analysis
I would be grateful if I could be permitted to refer to the contents on this text. I will acknowledg (...)
 
 
 
 
  Improved PESTLE Analysis: SATERPLIDE Analysis
In my work I have found a need to improve the conventional segmentation of the future to be more com (...)
 
 
 
 
  Other Marketing Environment Tools
Apart from this PEST framework used to analyze the macro environment, which other technigues can be (...)
 
 
 
 
Hot PEST Analysis for Non-Profit Organizations
Hi, I need opinions whether PEST analysis is the best tool to be used for public / non-profit organi (...)
 
 
 
 
  Unfavorable External Environment?
When do I realize that the environment I am operating in is not favorable to my organization? And wh (...)
 
 
 
 
  History of PEST - Origins and Author
I am wondering about the origins of PEST. And also about the authorship of the various variants such (...)
 
 
 
 
  Interaction Between an Organization and Its Energy Environment?
I read a text about organizational-environmental interaction and it has named factors affecting the (...)
 
 
 
 
  What is a Business Environment
It is the aggregate of all conditions, events and influences that surround a firm and affect it. Th (...)
 
 
 
 
  Environmental Factors in PESTLE
In PESTLE, what are examples of typical environmental factors? Thank you. (...)
 
 
 
 
  Technology Marketing and Economic Analysis in Utilities
A small developing economy creates a new government funded R&D company to streamline and consolidate (...)
 
 
 
 

Best Practices - PEST Analysis

Here you find the most valuable discussions from the past.


  Extension of PESTEL + C (=Competitors) Analysis
In discussions with a tutor at Deltic Training College (Mark Northway), it has been suggested that a (...)
 
 
 
 

Expert Tips - PEST Analysis

Here you will find advices by experts.


 

How to Analyze the Strategic Significance of some External Trend?

Analysis of Macro-environment, Strategic Environment (...)
 
 
 

Advanced Ways of Applying PEST Analysis

Analysis of Macro-environment, Strategic Environment (...)
 
 
 

Extensive 12-Factor PEST Analysis

International Strategic Environmental Analysis (...)
 
 
 

WHEN to use PEST analysis? Situations and Application Areas

PEST Analysis, Application Areas, Analysis of Macro-environment (...)
 
 
 

How to Refine my Initial PEST Analysis?

Advanced PEST Analysis (...)
 
 
 

Why Society is More Risky than Before

Understanding New Risk Categories, Risk Management (...)
 
 
 

Government Policies / Economic Policy Tools in PEST Analysis

PEST Analysis, Government Analysis, Analysis of Macro-environment, Strategic Environment (...)
 
 

Resources - PEST Analysis

Here you find powerpoint presentations, micro-learning videos and further information sources.


PEST Analysis Template

PEST Analysis (...)
 

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

External Environment, Environmental Scanning, Environmental Management, Competitive Environment (...)
 

PEST Analysis for Small and Medium-sized Companies

Initial Understanding of PEST Analysis, Summary (...)
 

Introduction of the P of PEST Analysis: Political

Initial Understanding of PEST Analysis (...)
 

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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