PEST Diagram Infographic

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PEST is an analysis of the environment of a company. The fields include politics (P, Political), economy (E, Economic), society (S, Social), and technology (T, Technology). It is broader than the scope of SWOT analysis, and is also commonly used in market environment analysis. Generally speaking, it belongs to the overall environmental analysis of the external analysis of the enterprise. 

The following lists the issues that may be included in each aspect.

Political Factors

  • When will the next general election be and what kind of impact will it have on industrial policy?

  • Are there any import and export quotas, taxes, or other legislative restrictions? What about the future?

  • The restriction of corporate regulations, such as production safety regulations, and the trend of the degree of loosening?

  •  How about the protection of consumers and the environment? 

  • What is the government's incentive or subsidy mechanism for enterprises?

  • Is there any political turmoil? Are there any rebels or military organizations that affect industrial activities?

  • Does the government have a preference for long-term trading partners and how to deal with it? Has my country signed a trade agreement with it?

  • What is the government's protection for workers in the country (such as maximum working hours or minimum wage)?

Economic Factors

  • What is the economic growth rate of the country? GDP, CCI, and PMI index

  • Interest rates are stable and unstable, what are the short-term and long-term trends?

  • What is the changing trend of consumers' disposable income?

  • What is the tendency of change in government spending

  • The proportion of industry imports and exports?

  • Labor growth and salary level

  • Exchange rate trend? What is the currency economy of the country?

  • Are there any seasonal fluctuations? 

  • What is the type of market competition?

  • The degree of government intervention in the free market?

  • Is the infrastructure complete?

Social Factors

  • How fast is the population growth? How long can the demographic dividend last? Is there an aging workforce?

  • Is the average education level?

  • What is the people's attitude towards work? Is there a big motivation for finding a job?

  • Are there religious habits that will affect business operations?

  • Information about health awareness and leisure hobbies?

  • Are there race issues that will affect business operations?

  • What is the family structure? Does it affect employee engagement?

  • Is there a population loss or massive migration?

Technology Factors

  • Is there enough research and development initiatives or projects, are there new technologies in the pipeline?

  • Does the competitor (also) master the core technology?

  • Where is the hot port for technology information?

  • What is the performance and trend of energy supply? Sources and prices are stable and unstable?

  • What are the technologies and use of waste treatment and recycling?

  • Is it possible to obtain public R&D funding?

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