PEST / PESTLE Analysis Powerpoint Template

Simple framework to analyze the four macro-environmental factors political, economic, social and technological

by StrategyPunk.com
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with Prof. Francis J. Aguilar
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Description
PEST is a simple framework to analyze the four macro-environmental factors political, economic, social and technological and how each can impact your business.

The four dimensions in this method are:
* Political: factors like education, infrastructure, health level and how the government and political environment intervenes in business
* Economic: factors like inflation, interest rates, economic growth and exchange rate and their effect on how the business can operate
* Social: factors like population and population growth, age distribution, culture and health consciousness which have a great impact on demand for company’s products and how the business can operate
* Technological: factors include R&D spendings, technology level, automation, all factors which have a great affect on the efficiency and production level of the business

Often, the PEST Analysis is extended by the factors Legal and Environmental: PESTLE (or PESTEL):

* Legal: factors include employment law, consumer protection law or discrimination law; this factors often have a great impact on the cost level and approval requirements
* Environmental: factors include geological aspects like climate, weather, climate change - all factors with great impact on how the company can operate and the cost level

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