Pest Analysis
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EST Analysis
(STEEPLE)
Political, Economic, Social, Technological Factors
PEST Analysis (STEEPLE)
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 factors
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Economic factors
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Social factors, and
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Technological factors.
PEST factors play an important role in the value creation opportunities of a strategy. However they are usually beyond 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