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PEST analysis
A form of strategic analysis that focuses on the external factors that might affect business activities. These factors include: Political (and legal), Economic, Social, and Technological factors.
Political factors (examples)
- government policies and extent of government intervention
- gov. stability
- Environmental regulations
- Employment law
- Competition regulations
- Consumer protection laws
Ecnomic factors (examples
- Rate of economic growth
- Exchange rate stability
- Membership of common currency
- Tax rates and likely changes
- Interest rates
- Inflation rates
- Country's membership or free trade areas
Social factors (examples)
- Demographic changes
- Dominant religion and its impact
- Education standards (impact on labor skills)
- Roles of men and women
- Social and environmental issues that could have an effect on society
- Labour and social mobility and migration levels
- Languages spoken
Technological factors (examples)
- New tech. allowing products to be made more cheaply
- Government support for research spending
- Impact on internet access and speed on marketing and other strategies
- Cost of renewable energy compares to fossil fuels
- Speed of technological obsolescence
- Importance of product innovations
- Process innovations and impact on competitiveness
