PEST Framework

PEST Framework Using PEST Analysis for Business Edit this Template
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For sustainable development, an organization must formulate an effective development strategy. There are many ways to develop a development strategy. No matter which method is adopted, we must first understand the current environment and the possible changes in the future environment of the organization, and grasp that only through the development status of the organization can we make effective decisions and determine the best development strategy of the organization.

There are many ways to analyze an organization's external environment. The most classic method is PEST analysis, which is to analyze the political, economic, social and technological environment, including:

  1. Political Factors - The investigation of government policies, systems, laws and regulations.

  2. Economic Factors - Analyze the market mechanism, market demand and living standard of citizens' income;

  3. Social Factors - Analyze the population scale, population structure, population quality, population flow, population distribution, education, social values, national culture exploration and other aspects;

  4. Technological Factors - New machines, new software, new technology, new materials for research.

PEST analysis refers to the analysis of the macro-environment . P is political (Political System), E is economic (Economic), S is social (Social), and T is technology (Technological). They are not independent of each other, but are interrelated and affect each other. PEST analysis is also commonly used to predict industry trends.

PEST analysis requires a large amount of sufficient relevant research data and a deep understanding of the analyzed company. Otherwise, this type of analysis is difficult to proceed. 

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