PEST ANALYSIS Political Economic Social Technological Factors PEST

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 • • 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