P.E.S.T ANALYSIS

What is P.E.S.T?

Political

Economic

Socio-Cultural

Technological

A P.E.S.T analysis is an essential tool in strategic planning.
It monitors market growth and decline.
It analysis' the market prior to decision making and helps the business to see the bigger picture.
It is a way to try and avoid mistakes.


Variations of a P.E.S.T analysis


P.E.S.T.E.L


Political

Economic

Socio-Culural

Technological

Legal

Environment


P.E.S.T.L.I.E.D.


Political

Economic

Social-Cultural

Technological

Legal

International

Environmental

Demographic

Depending the depth of information that is needed depends which variation of P.E.S.T is used.

P.E.S.T Broken Down

Under each category there are several aspects  that need to be covered.
Depending which variation of PEST analysis is used depends exactly what goes in each category.
This means as the P.E.S.T analysis is the shortest it includes some of the legal aspects in political.

POLITICAL

This includes aspects such as:

Government policies
POlitical parties
Legislation
International pressure groups
Wars and conflicts
Regulatory organisations
Grants and other funding initiatives

ECONOMIC

Economic climate
Inflation
Interest/exchange rates
Unemployment levels
Trade/market cycles
International monetary issues
Energy costs

SOCIO-CULTUAL

Demographic changes
Education and health
Lifestyle trends
Media
Ethics
CHanges in value and culture
Work/leisure attitudes
Role models/fashion

TECHNOLOGICAL

Information and communications
Use of new technology
Multi-media/Internet
On-going innovation
Intellectual property issues
Global communications


Macro and Micro Environments

When looking at an event there are both Micro and Macro environment (Mullins 1990 P101).

Macro environments are the big picture that will control the event (e.g. weather).

These are the things that are covered in a P.E.S.T analysis such as Legal, Political, Economic, Socio-Cultural, Technological and the Environment.

Micro environments is the small picture, the event organiser has control over and can be changed.

This includes other stakeholders customers, suppliers and competitors.