PEST ANALYSIS
Political, Economic, Social, Technological Factors PEST Analysis
The PEST Analysis is a framework that strategy consultants use to scan the external
macro-environment in which a firm operates. PEST is an
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Political factors
Economic Factors
Social factors, and
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
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
Environmental regulations
and protection
Economic growth
Income distribution
Tax policies
Interest rates & monetary
policies
Demographics, Population
growth rates, Age distribution
International trade
regulations and restrictions
Government spending
Labor/social mobility
Contract enforcement law
Consumer protection
Unemployment policy
Lifestyle changes
Employment laws
Taxation
Work/career and leisure
attitudes Entrepreneurial spirit
Government
organization/attitude
Exchange rates
Education
Competition regulation
Inflation rates
Fashion, hypes
Political Stability
State of the business cycle
Health consciousness &
welfare, feelings on safety
Safety regulations
Consumer confidence
Living conditions