PEST is a framework for analyzing the macro-level environment of a business that surveys the Political, Economic, SocioCultural and Technological (PEST) factors in the external environment. The factors are then assessed to identify significant changes that might have an impact on planned global expansion of an existing product or service, entrance into a new market, a foreign business opportunity, or a multinational company's (MNC's) competitive edge in its global business operations.The aim is to identify those external factors that present opportunities or threats.
Strategic Management Insight, MindTools, and Businessballs offer guidance for many strategy tools, including PEST Analysis, by offering definitions, summaries and step-by-step guides. Go to PEST Analysis Template for a one-page worksheet.
Created by Associate Professor Elizabeth Mezick.