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Fillable Printable PEST Analysis Template

Fillable Printable PEST Analysis Template

PEST Analysis Template

PEST Analysis Template

PEST Analysis
A scan of the external macro-environment in which the firm operates can be
expressed in terms of the following factors:
Political
Economic
Social
Technological
The acronym PEST (or sometimes rearranged as "STEP") is used to describe a
framework for the analysis of these macroenvironmental factors. A PEST analysis
fits into an overall environmental scan as shown in the following diagram:
Environmental Scan
/ \
External Analysis Internal Analysis
/ \
Macroenvironment Microenvironment
|
P.E.S.T.
Political Factors
Political factors include government regulations and legal issues and define both
formal and informal rules under which the firm must operate. Some examples
include:
tax policy
employment laws
environmental regulations
trade restrictions and tariffs
political stability
Economic Factors
Economic factors affect the purchasing power of potential customers and the
firm's cost of capital. The following are examples of factors in the macroeconomy:
economic growth
interest rates
exchange rates
inflation rate
Social Factors
Social factors include the demographic and cultural aspects of the external
macroenvironment. These factors affect customer needs and the size of potential
markets. Some social factors include:
health consciousness
population growth rate
age distribution
career attitudes
emphasis on safety
Technological Factors
Technological factors can lower barriers to entry, reduce minimum efficient
production levels, and influence outsourcing decisions. Some technological
factors include:
R&D activity
automation
technology incentives
rate of technological change
External Opportunities and Threats
The PEST factors combined with external microenvironmental factors can be
classified as opportunities and threats in a SWOT analysis.
Recommended Reading
John Middleton, The Ultimate Strategy Library : The 50 Most Influential Strategic Ideas of All
Time
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