PEST Analysis

Knowledge Center

• About
• Home
• Dictionary
• Encyclopedia
• Question?
• Views

• Register
• Log in
• Help

• Change & Organization
• Communication & Skills
• Decision-making & Valuation
• Ethics & Responsibility
• Finance & Investing
• HRM
• Knowledge & Intangibles
• Leadership
• Marketing
• Program & Project
• Strategy
• Supply Chain & Quality

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.

PEST Analysis Special Interest Group Special Interest Group (361 members)

PEST Analysis Forum   Recent topics   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 comp...           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 'mark...           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, politica...

Best Practices - 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 looking for a model that I can use. Of course I wil...           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 deri...           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 negligence of control mechanism in financial sector in...         All you need to know about management   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 ...           Advanced form of PEST: PESTELEM Analysis An advanced form of PEST analysis is called PESTELEM Political Economic Social Technological Ecological Legal Ethic...           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 ...           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 P...           BOOK: The SPELIT Power Matrix The SPELIT Power Matrixis similar to PEST. It details how to internally and externally assess an organization utilizing the Social, Political, Economi...           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 acknowledge the source....           Other Marketing Environment Tools Apart from this PEST framework used to analyze the macro environment, which other technigues can be used?...           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?...           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....           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 t...           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 efforts in R&D on energy, water, and technology d...

Expert Tips - PEST Analysis   How to Analyze the Strategic Significance of some External Trend?       Advanced Ways of Applying PEST Analysis       Extensive 12-Factor PEST Analysis       WHEN to use PEST analysis? Situations and Application Areas       How to Refine my Initial PEST Analysis?       Why Society is More Risky than Before       Government Policies / Economic Policy Tools in PEST Analysis     Advance yourself in business administration and management

Resources - PEST Analysis PEST Analysis Template   External Environment In-depth: Sub-types and How to Manage Them   PEST Analysis for Small and Medium-sized Companies   Introduction of the P of PEST Analysis: Political     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       Accelerate your management career

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