A PEST Analysis is often used in conjunction with a SWOT Analysis to provide a macro look at external factors impacting a business objective. This includes looking at political, economic, social/cultural, and technological factors that could have impact on your business objectives. This includes looking at exchange rates, cultural norms, upcoming elections, population growth rates, and many more.
How can existing or future political factors, such as future elections, taxes, trade practices, environmental law, political stability, impact your objective.
How can existing or future economic factors, such as growth rates, interest rates, exchange rates, inflation, impact your objective.
How can existing or future social factors, such as cultural attitudes, health consciousness, age distribution, religious beliefs, population growth rate, career ambitions, impact your objective.
How can existing or future technological factors, such as R&D, barriers to entry, automation, technology incentives, rate of change, impact your objective.
A clear objective is critical to a successful PEST Analysis. Example objective "to successfully expand into the European market and achieve 10% market share". When your objective is clear everyone should be able to describe it in a consistent manner and can visualize what success looks like.
Use this online PEST Analysis TempIate and invite your team to share their input and rate the top ideas.
List out as many factors as your team can brainstorm for each quadrant. Then rate the top items by clicking on the star to float them to the top.
We recommend using SMART goals to activate your action plan. SMART stands for Specific, Measurable, Attainable, Relevant, and Time-bound goals.
For any goal, objective, decision where it is important for you to understand how the macro environment can impact your objective.
What changes would you make your product based on cultural norms, environmental factors, new laws being enacted.
Will your process work in other regions, markets, cultures. How will new technology impact your prcoesses?
Do customer buy the same way in other regions? How can political factors change customer buying decisions?
What will distributors and partners in other regions need from your business?
How will exchange rates and growth rates impact your profits?