P.E.S.T Analysis

Hello again people. Today we are going to have a look at PEST analysis. No, its not a rat and critter analysis, it is actually one of the most important strategic tools in management and marketing.

So, what PEST means? It is acronym from words POLITICAL, ECONOMIC, SOCIAL and TECHNOLOGICAL. When first letters of these words are combined, we get its name. In a word, PEST analysis is an analysis of political, economic, social and technological factors in a specific region or country. This analysis is a foundation for all means of strategic planning and also for some other analysis, for ex. SWOT analysis.

POLITICAL

- Current political situation (level of political risk)
- Political factors that can have a effect on our business.
- Is political climate suitable for developing new competitors?
 etc.

ECONOMIC

- General economic situation in a region
- Wealth of the nation
- Buying power in a region
- Degree of market and econ. growth
etc.

SOCIAL

- Population
- Level od education in a region
- Social attitudes
etc.

TECHNOLOGICAL

- Infrastructure
- Level of technological sophistication in a region
- Potential for technological growth
etc.


There are also two more analysis in addition to PEST.
These are LEGISLATION and ENVIROMENT analysis but they are not used as often. With these two, the full neme would be PESTLE analysis.

Thats all for now, see you soon.
BojanCo