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PEST analysis (stands for: Political, Economic, Socio-cultural and Technological) describes a framework of macro-environmental factors used in the environmental scanning component of strategic management. It is part of an external analysis when conducting a strategic analysis or doing market research, and gives an overview of the different macroenvironmental factors to be taken into consideration. It is a strategic tool for understanding market growth or decline, business position, potential and direction for operations.
Variaties based on the PEST framework are:
- SPELIT, adding legal and intercultural factors. Popular in the United States
- SLEPT, adding legal factors
- PESTEL or PESTLE, which adds legal and environmental factors. Popular in the United Kingdom
- STEPE, adding ecological factors
- STEEPLE and STEEPLED, adding ethics and demographic factors
- DESTEP, adding demographic and ecological factors
Snippet: Overview Macroeconomic Trends over the Past Two Decades GDP growth ( per annum) Agriculture Industry Services Investment rate ( of GDP) Public-Private Inflation (WPI, per annum) General government deficit ( of GDP) Current account balance ( of GDP) External reserves (months of goods and services imports, end of period) Sources: FICCI, Government Agencies 1.3.. These include departmental stores, coffee kiosks, cybercafés, laundry services, pizza joints, courier services, pollution check, ticketing, music shops, auto LPG stations, auto service centers, kerosene distribution, photo studios, pay by card, telephone directory distribution, automated teller machines (ATM) counters and round-the-clock drug and general stores.
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