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Pest Analysis

Submitted by kevin0409 on March 24, 2008

Category: Business
Words: 275 | Pages: 2
Views: 215
Popularity Rank: 48,517
Average Member Grade: N/A (Add a Comment / Grade this Paper)

EST Analysis
(STEEPLE)

Political, Economic, Social, Technological Factors
PEST Analysis (STEEPLE)



The PEST Analysis is a framework that strategy consultants use to scan the external macro-environment in which a firm operates. PEST is an acronym for the following factors:

*

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 must normally be considered as either threats or opportunities. 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


Technological



Environmental regulations and protection


Economic growth


Income distribution


Government research spending

Tax policies


Interest rates & monetary policies


Demographics, Population growth rates, Age distribution


Industry focus on technological effort

International trade regulations and restrictions


Government spending


Labor / social mobility


New inventions and development

Contract enforcement law

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