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......

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Title: Pest Analysis
Approximate Word Count: 767
Approximate Pages: 4 (250 words per double-spaced page)

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