What is a PEST Analysis?
A PEST analysis is a sense-making technique used in strategic planning and situational analysis. Participants brainstorm and map out what's changing in their operating environment, then brainstorm the opportunities and threats they can now see may arise from these changes. PEST is an acronym for Political, Economic, Socio-Cultural, and Technological, the four types of change the team lists during this activity. There are several variations on this technique with similar acronyms.
- PESTLE/PESTEL: Political, Economic, Socio-Cultural, Technological, Legal, Environmental
- LoNGPESTLE: Local, National, and Global versions of PESTLE, used by multi-national organizations.
- PESTLIED: Political, Economic, Socio-Cultural, Technological, Legal, International, Environmental, Demographic.
- STEEPLE: Social/Demographic, Technological, Economic, Environmental, Political, Legal, Ethical.
- SLEPT: Socio-Cultural, Legal, Economic, Political, Technological.