PEST Analysis: Studying the External Environment

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The company's activities are influenced not only by internal factors, but also by external ones. And the latter are perhaps more important than the former, because they cannot be influenced. And in order to study the external environment, PEST analysis is used.

If you need such data, you can order the service from Fractus.

PEST analysis: features
The method, designated by the abbreviation PEST, includes the study of the influence of the macroenvironment on the company, namely political (P), economic (E), socio-cultural (S) and technological (T) factors. It is necessary to assess the current state and forecast changes.

As with the internal/external approach called SWOT angola email list 276670 contact leads analysis, pestle analysis involves a thorough examination of each area against a set list of criteria that are important to the company. Below are some of them.

PEST analysis: features

Political
Subject to study:

national and world political situation;
prerequisites for change;
government intervention in the company's sphere of activity;
tax policy;
level of bureaucracy and corruption;
tendencies towards the emergence of a political crisis.
Economic
Analyze:

indicators of citizens' income;
inflation rate;
the state of the labor market, including the unemployment rate;
dynamics of the gross domestic product;
changes in exchange rates;
changes in the markets on which the company depends;
dynamics of economic development;
cost of energy and raw materials.
Socio-cultural (Social)
The following are subject to consideration:

demographic indicators and their dynamics;
development of consumer preferences;
specificity of mentality;
the level of education of the population (including the qualifications of personnel).
Technological
The analysis concerns:

state policy in the field of innovative developments;
the level of technology in the industry;
the impact of innovations on business;
the emergence of new discoveries, patents, products, etc.;
company access to technology;
development of the Internet, mobile devices, their impact on the company.
Why do research?
There are several reasons why a PEST analysis of a company is necessary. It allows you to understand whether the product will be in demand in the market and how it can be affected by an external driving force, whether there are opportunities to enter other markets, what advantages competitors have, the tendency for risks to arise and their impact on the future activities of the business.

Variations of analysis
Not only PEST and SWOT analysis are used. There are other methods based on PEST, which include additional factors.

SLEPT . In addition, the legal field is analyzed (Legal).
PESTEL . The list includes the analysis of the ecological environment (Ecological) and the sphere of legal relations (Legal).
PESTELI . The industry to which the business belongs is studied.
LONGPEST . To the general set of factors are added those that concern the local (Local), state (National) and world (Global) levels.
STEEPLE . The study includes the legal field (Legal), the environmental situation (Ecological) and ethical issues (Ethical).
Variations of analysis

PEST Research by Fractus
Do you need an analysis of the external environment that affects your business? But there is no one to set such a task? Hurry to order a PEST analysis or any other from Fractus: we have a team of specialists. They will carefully analyze the current state of factors important for business, and also make a forecast. And you will get a clear picture, according to which you can plan further actions. Contact us! We will be able to help your company.

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