PEST Analysis Training Video
PEST Analysis Best Practices
PEST Analysis is a standard business practice of evaluating the Political, Economic, Social, and Technological dimensions that can impact your organization and its markets. Its purpose is to identify potential threats and opportunities coming from the external environment over which the organization has no control but must anticipate when making strategic decisions.
More about PEST Analysis
Description of PEST Analysis
Analyzing each PEST dimension as it relates to your business helps the organization avoid pitfalls when designing and implementing the strategy. Conducting a PEST Analysis for every country or region in which the business is active or potentially active clarifies what the trends and big-picture issues are for each dimension that must be known.
- The Political dimension encompasses issues related to tax, trade, and employment law, regulations and overall stability, all of which are likely to impact your business’ activities.
- The Economic domain includes factors such as inflation, growth, interest rates, and the unemployment rate.
- Social issues such as culture, education, and demographics can influence the viability and development of your products and services.
- Technological development, internet use and government-sponsored research and development must also be examined in terms of any potential barriers or advantages for the business.
Once all of the factors and related threats and opportunities have been identified, any resulting changes to strategy or the future direction of the company must be addressed.
Praxie's Online PEST Analysis Tools & Templates
Strategy leaders looking to fully understand their marketplace and competitive landscape should always consider conducting a thorough PEST analysis. The new online PEST Analysis template from Praxie provides specific instructions and a grid that lists the PEST dimensions down the left side and the factors, opportunities, and threats across the top. Completing the template with this structure is the most common way to start the PEST Analysis process. PEST Analysis is a standard business practice of evaluating the Political, Economic, Social, and Technological dimensions that can impact your organization and its markets.
The PEST Analysis can be conducted on a piece of paper but is often better when made available to a wider group of collaborators through an online tool or template. Get started with our PEST Analysis template.
How to use it:
- To define the most relevant and critical political economic, social, and technological trends, start by reviewing the guidance.
- Obtain research and input from key stakeholders.
- List the top trends for each area.
- Create an action plan for completing the PEST Analysis, including obtaining input from key stakeholders and conducting research into the four areas.
Unlike most traditional PEST Analysis techniques, Praxie’s online PEST Analysis collaboration tools allow any team or organization to instantly begin working with our web templates and input forms. Our digital platform goes far beyond other software tools by including progress dashboards, data integration from existing documents or other SaaS software, elegant intuitive designs, and full access on any desktop or mobile device.