Business: PESTEL (PEST) Analysis

PEST is a framework for analyzing the macro-level environment of a business that surveys the Political, Economic, SocioCultural and Technological (PEST) factors in the external environment. The factors are then assessed to identify significant changes that might have an impact on planned global expansion of an existing product or service, entrance into a new market, a foreign business opportunity, or a multinational company's (MNC's) competitive edge in its global business operations. The aim is to identify those external factors that present opportunities or threats.

Strategic Management Insight, MindTools, and Businessballs offer guidance for many strategy tools, including PEST Analysis, by offering definitions, summaries and step-by-step guides.

What to Consider for PESTEL/PEST Analysis

PESTEL issues can affect a company on many levels.  Consider how they affect your suppliers, customers, competitors, and complementors as well.  For information: look at Industry Forecasts Company Analyst Reports  search for journal and newspaper articles  (Use links in adjacent column)

Political and Sociological Factors:

1. Peruse Industry Reports
2. Search for Journal & Newspaper articles related to Political and Social issues:

• How does the government affect the economy and thus your company/product?
• Consider cultural aspects, population growth, age distribution, health & career awareness, etc.

Sample search strategies:
- company name AND relevant key words       - trends AND your industry

Economic Factors:

1. Peruse industry reports
2. Search for Journal & Newspaper articles related to economic issues. Search by company name and pertinent key words.

Technological Factors:

Find information on how technology impacts your product or the direction the market is moving:

1. Use Competitors' web sites:  Note: the site may contain Newswires about their company with not-yet-released product information that can impact your company. 
2. Search for Journal & Newspaper articles

Environmental search strategies:

1. Search for articles using the company name and pertinent keywords such as "environment" or "environmental." 
2. See Also Sustainable Business link in adjacent column.

Legal search strategies:

What laws affect a company's operations, costs and demand?

1. Ponder different legal issues on Federal, State, County and City levels.  
2. Consider - Intellectual Property, past lawsuits, zoning, and possible changes to legislation.
3. Use links in adjacent column for - Newspaper Articles