The name is an acronym for four English words that represent specific groups of factors in a company's environment. They are: political factors (Political), economic factors (Economic), sociocultural taiwan phone code factors (Social/Socio-cultural) and technological factors (Technological). An entrepreneur planning to operate in a particular market must take into account each of the above environments.
There is also a more elaborate variant of the PEST analysis, which also takes into account environmental factors (Environmental) and legal factors (Legal). The analysis is then called PESTEL.
Stages of PEST analysis
PEST analysis consists of three main stages.
Identification of relevant factors relating to the different segments of the environment.
Evaluate the impact of each of the factors in the PEST analysis on the functioning of the organization.
Identify the relationship between the company and its macroeconomic environment .
Step-by-step PEST analysis example
In order to present the various stages of the analysis in an easily digestible way, a PEST analysis example is presented for a rehabilitation equipment company that is planning to enter a foreign market. The PEST analysis should begin by identifying the various aspects that may affect the company's operations in a given market. These should be broken down according to the different segments of the environment.