A PEST (Political, Economic, Social & Technological) analysis is a strategic business tool used by organizations to discover, evaluate, organize, and track macro-economic factors which can impact on their business now and in the future.

Downloadable Tools

Political

Political or politically motivated factors that could impact the organization.

Examples include: Government policy, political stability or instability, bureaucracy, corruption, competition regulation, foreign trade policy, tax policy, trade restrictions, labor/environmental/copyright/consumer protection laws, funding grants & initiatives, etc.

Questions to ask:

  • What government policies or political groups could be beneficial or detrimental to our success?
  • Is the political environment stable or likely to change?

Economic

Overall economic forces that could impact on your success.

Examples include: Economic trends, growth rates, industry growth, seasonal factors, international exchange rates, International trade, labor costs, consumer disposable income, unemployment rates, taxation, inflation, interest rates, availability of credit, monetary policies, raw material costs, etc.

Questions to ask:

  • What economic factors will affect us moving forward?
  • How does the performance of the economy affect us at the moment?
  • How are our pricing, revenues, and costs impacted by each economic factor?

Social

Social attitudes, behaviors, and trends that impact on your organization and target market.

Examples include: Attitudes and shared beliefs about a range of factors including money, customer service, imports, religion, cultural taboos, health, work, leisure, the environment; population growth and demographics, immigration/emigration, family size/structure, lifestyle trends, etc.

Questions to ask

  • How do our customer’s beliefs and values influence their buying habits?
  • How do cultural trends and human behavior play a role in our business?

Technological

Technology that can affect the way you make, distribute, and market your products and services.

Examples include: Technology and communications infrastructure, legislation around technology, consumer access to technology, competitor technology and development, emerging technologies, automation, research and innovation, intellectual property regulation, technology incentives, etc.

Questions to ask:

  • What technological advancements and innovations are available or on the horizon?
  • How will this technology impact on our operations?