PEST Analysis Why a PEST PEST Analysis helps

PEST Analysis

Why a PEST? PEST Analysis helps to understand the Political, Economic, Social, and Technological changes that will shape your business environment.

Current Context Commissioning - New procurement process (funding human services) - Mix of government, private & not-for-profit agencies - Government is looking for value for money (efficient & effective) - Business approach - Analysis of data, trends, community etc - Relies on collaboration and partnership with diverse players – Co-design is the foundation Commissioning will mean a cultural change for the sector

Political This analyses how legal issues and government regulations affect the probability of a business being successful and profitable. Issues which need to be considered include political stability, employment laws, safety regulations and trade regulations.

Economic This factor focuses on the economic aspects to determine whether or not they can play a role in the success of a business. Issues such as economic growth, unemployment policies, and business cycle of the country, as well as economic, interest and inflation rates need to be taken into consideration.

Sociocultural This examines the cultural and demographic aspects to determine whether the business can compete in the market. This factor will help assess consumer needs as well as the things which compel them to make a purchase or engage with a service. Age distribution, lifestyle changes, population growth, demographics, environmental, health and educational consciousness are some important issues which need to be considered.

Technological This factor analyses the factors which affect the means it can bring its product or service to the market. The technology available can either make it easy or tough to improve the production level or enter the industry. Therefore, things such as government expenditure on technology, technological advancements, and lifecycle of technology available, as well as the role of internet and the changes to it (if any) need to be considered.

Bringing. Fit all Together PEST can help bring the jigsaw together! Aims of today’s PEST: - Use and build our shared knowledge - Stimulate discussion about using information from our PEST in the Commissioning Framework - Prioritising elements of analysis for action - Commence developing a collaborative regional identity & approach towards Co-design and Commissioning