PEST Analysis

Knowledge Center

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)




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


Work/career and leisure attitudes

Entrepreneurial spirit

Life cycle and speed of technological obsolescence

Government organization / attitude

Exchange rates


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

Special Interest Group (369 members)

Forum - PEST Analysis  

In this forum you will find recent interesting discussions.

  PEST / PESTLE Criticisms
What are some of the criticisms of the PESTEL Analysis?...
  PEST Analysis for a Country (4 reactions)
Does anyone know where I can get a PEST analysis on a countr...
  External Environment of a Service Company (3 reactions)
I need to examine the external environment of a recruitment ...
  PEST Analysis is Complementary to SWOT Analysis (3 reactions)
PEST is one of the essential tool to supplement the SWOT ana...
  PEST Analysis Standard Format? (1 reactions)
I have to do a PEST analysis. Is there a standard format (li...
  System Risk in PEST Analysis (1 reactions)
As per recent global recession, how do you include in PEST a...
  Advanced form of PEST: PESTELEM Analysis (2 reactions)
An advanced form of PEST analysis is called PESTELEM Politi...
  Direct and Indirect External Environment of the Firm
What is needed to survive in dynamic environment.The world i...
  How to Conduct a PEST Analysis? Main Steps and Tips (1 reactions)
Is there a specific way in performing a PEST analysis, or is...
  BOOK: The SPELIT Power Matrix (1 reactions)
The SPELIT Power Matrixis similar to PEST. It details how to...
  PEST Analysis on Retail (1 reactions)
Does anyone have a pest analysis on a retail industry. Thank...
  Organisational Analysis (1 reactions)
I would be grateful if I could be permitted to refer to the ...
  Improved PESTLE Analysis: SATERPLIDE Analysis (1 reactions)
In my work I have found a need to improve the conventional s...
  Other Marketing Environment Tools (1 reactions)
Apart from this PEST framework used to analyze the macro env...
Hot PEST Analysis for Non-Profit Organizations
Hi, I need opinions whether PEST analysis is the best tool t...
  Unfavorable External Environment?
When do I realize that the environment I am operating in is ...
  History of PEST - Origins and Author (2 reactions)
I am wondering about the origins of PEST. And also about the...
  Interaction Between an Organization and Its Energy Environment? (1 reactions)
I read a text about organizational-environmental interaction...
  What is a Business Environment
It is the aggregate of all conditions, events and influences...
  Environmental Factors in PESTLE (1 reactions)
In PESTLE, what are examples of typical environmental factor...
  Technology Marketing and Economic Analysis in Utilities
A small developing economy creates a new government funded R...

Best Practices - PEST Analysis

Here you will find the most valuable discussions from the past.

  Extension of PESTEL + C (=Competitors) Analysis (1 reactions)
In discussions with a tutor at Deltic Training College (Mark...

Expert Tips - PEST Analysis

Here you will find high-quality advice from 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 will 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...

News about Pest Analysis


News about Macro-environment Analysis


Videos about Pest Analysis


Videos about Macro-environment Analysis


Presentations about Pest Analysis


Presentations about Macro-environment Analysis


Books about Pest Analysis


Books about Macro-environment Analysis


More about Pest Analysis


More about Macro-environment Analysis


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

More Management Methods, Models and Theory

Special Interest Group Leader

You here? Sign up for free


About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2019 12manage - The Executive Fast Track. V15.1 - Last updated: 20-10-2019. All names ™ of their owners.