PEST

PoliticalEconomicSocioculturallTechnological

PEST allows you to assess or analyze the impact of the external environment in our world on a certain organization’s activities. It is a type of analysis that is used in all areas of the business.The four factors include political, economic, sociological, and technological.

Political
This factor involves changes in employment consumer, competition, or tax laws. It could also involve a new government that will change political objectives in the business world.

Economic
Since the economy is always changing, economic factors are always monitored. These include interest rates, exchange rates, growth rates, inflation, and unemployment.

Sociological
Sociological factors include changing lifestyle, buying habits and preferences and changing demographics in a society.

Technological
Technological factors are basically advancements in technology such as new products, improvements in the production process, or the internet.

 

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