PEST Model Template

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PEST analysis refers to the analysis of the macro environment, P is the political system, E is the economy, S is the society, T is the technology. When analyzing the background of a business group, it is usually through these four factors to analyze the situation faced by the enterprise group.

Political environment (political factors) -- Political environment mainly includes the political system and future situation, as well as the attitude of industry government; On the other hand, the legal environment mainly includes laws and regulations made by the government. Here are some of these examples:

  • Is the political environment stable?

  • Will national policies change the law to strengthen the supervision of companies and collect more taxes?

  • What are the market ethics standards held by the government?

  • What is the government's economic policy?
    Does the government care about culture and religion?

  • Has the government signed trade agreements with other organizations, such as the European Union (EU), North American Free Trade Area (NAFTA), ASEAN (ASEAN), etc.?

The economic environment (Economic Factors) - Economic environment constitutes the key strategic elements of the economic environment: GDP, interest rate level, fiscal and monetary policy, inflation, unemployment rate, disposable income level of residents, exchange rate, energy supply cost, market mechanism, market demand, etc. Here are some of these examples:

  • Interest rate.

  • Inflation rate and per capita employment rate.

  • Long-term expectations of per capita GDP, etc.

    Cultural environment (Sociocultural Factors) - Social factors have the greatest impact on the population environment and cultural background. The population environment mainly includes factors such as population size, age structure, population distribution, ethnic structure, and income distribution. Here are some of these examples:

  • What is the religion with the most people

  • What is the attitude of people in this country towards foreign products and services?

  • Will language barriers affect product marketing?

  • How much free time do consumers have?

  • What are the roles of men and women in this country?

  • Do people in this country live long? Are the elderly wealthy?

How do people in this country view environmental issues?

Technological environment (Technological Factors) - Technological factors are not only includes inventions, but also includes the emergence and development trend of new technologies, new processes, new materials and application backgrounds related to the corporate market. Here are some of these examples:

  • Does technology reduce the cost of products and services and improve quality

  • Does technology provide consumers and enterprises with more innovative products and services, such as online banking and new generation mobile phones?

  • How has technology changed distribution channels, such as online bookstores, air tickets, auctions, etc.

  • Does technology provide a brand-new channel for companies to communicate with consumers, such as banners, CRM software, etc.?

Análisis PEST Template Specifications:
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