Descriptions of PEST / PESTLE Analysis
PEST Analysis is used to assess the market environment for a business.
- Political
- Economic
- Social
- Technology
There are variations of the model which identify other factors, although some researchers argue that those additional factors are just aspects of the main four. Variations include reorganization of the letters (ESTP, STEP) or the addition of Legal, Environmental, Ethical, Legislative, International, Industry, or Demography (PESTLE, STEEP, STEPE, STEEPLED, PESTELI).
-
How to find PEST Analysis Information for a company, organization, or industry (Ohio University)Chad Boeninger -- "The purpose of this guide is to list resources to use when performing a P.E.S.T. Analysis. Many of the resources will be listed several times for each section of the P.E.S.T. Analysis. While this may seem redundant, it has been my experience that students working in teams often split up the letters. Therefore, each resource will be listed for each letter of the P.E.S.T. with specific recommendations for how to use the resource to retrieve the information for the appropriate letter."
UCF Libraries does provide access to some of the resources identified by Chad Boeninger: CountryWatch (in Business Source Premier), LexisNexis Academic, S&P Industry Surveys, IBISWorld, SEC 10-K Filings, American FactFinder, Bureau of Economic Analysis, Mintel
UCF Libraries does not subscribe to Passport, D&B Country Risk Reports, First Research, MediaMark Reporter -
01: BUSINESS STRATEGY AND OBJECTIVES (2010).Swindon: BCS Learning & Development Limited
PESTLE Analysis - Political
Examples:
- government type and stability
- freedom of press, rule of law, levels of bureacracy & corruption
- regulation and de-regulation trends
- social and employment legislation
- tax policy and trade & tariff controls
- likely changes in the political environment
PESTLE Analysis - Economic
Examples:
- stage of business cycle
- current & projected economic growth, e.g. GDP / GNP growth
- inflation & interest rates
- unemployment and labor supply
- labor costs
- levels of disposable income & income distribution
- impact of globalization
- likely impact of technological or other change on the economy
- likely changes in the economic environment
PESTLE Analysis - Social
Examples:
- population growth rate and age profile
- population health, education & social mobility, and attitudes to these
- population employment patterns, job market freedom & attitudes to work
- press attitudes, public opinion, social attitudes & social taboos
- lifestyle choices and attitudes to these
- socio-cultural changes
- health consciousness
PESTLE Analysis - Technology
Examples:
- impact of emerging technologies
- impact of internet, reduction in communication costs & increased remote working
- research & development (R&D) activity
- impact of technology transfer
- degree of automation
- rate of technological change
PESTLE Analysis - Legal
Examples:
- antitrust law
- consumer law
- discrimination law
- employment law
- health & safety laws
PESTLE Analysis - Environmental
Examples:
- weather
- natural disasters
- climate
- climate change
- environmental taxes
- demand for "green" products
History of PEST Analysis
In his 1967 book, Scanning the Business Environment, Francis Joseph Aguilar identified four aspects of the external environment in which an industry operates: Economic, Technological, Political, Social (ETPS).
Other authors have reorganized the letters and added new categories over the years. The following articles include some of the variants.
-
Scanning the Business Environment byCall Number: General Collection - 3rd Floor -- HD 38.A32Publication Date: 1967
-
Environmental Analysis for Corporate Planning byBusiness Horizons, October 1974, vol. 17, issue 5, p. 27-38
-
Environmental Scanning and Forecasting in Strategic Planning -- The State of the Art byLong Range Planning, February 1981, vol. 14, issue 1, p. 32-39
If you're doing a PESTLE analysis for a company or industry in the United States
-
United States Country Profile (MarketLine via EBSCOhost)"The article provides an analysis of the political, economic, social, technological, legal and environmental (PESTLE) structure in the U.S. as of July 2013. The four parameters in which each PESTLE structure is explored include current strengths, current challenges, future prospects, and future risks. A summary of the country's key economic indicators from 2010 to 2016 is also provided, including gross domestic product (GDP), exports and unemployment."
Resources for PESTLE Analysis
-
MarketLine AdvantageInternational industry and company information, including SWOT profiles
- for access to some MarketLine reports, connect to Business Source Premier, select the "Enhanced Business Searching Interface" and browse or search the Industry Profiles
-
World Bank Group resources- Doing Business
- Doing Business Law Library
- Enterprise Surveys
OECD Economic Surveys & Outlook
-
OECD Economic Surveys"OECD’s periodic reviews of member and non-member economies. Member country reviews are generally done on an 18 month cycle,while non-member reviews are done as agreed with the subject country. A minimum of 18 surveys are done each year. Each issue provides a comprehensive analysis of developments in the subject country, along with individual chapters covering key economic challenges being faced and recommendations for dealing with the challenges."
-
OECD Economic Outlook"the OECD’s twice-yearly analysis of the major economic trends and prospects for the next two years. Prepared by the OECD Economics Department, the Outlook puts forward a consistent set of projections for output, employment, prices and current balances based on a review of each member country and of the induced effect on each of them on international developments."
Country Reports from Business Source Premier
Business Source Premier -- scroll down to Business Source Premier and select "Enhanced Business Searching Interface" and then Browse: Country Reports
Business Monitor International
- Regional Monitors -- "Political & economic analysis with specific asset class forecasts for over 64 emerging markets globally. How portfolio managers are investing in the emerging markets & financing & credit record."
- Business Forecast Reports for specific countries -- "Contains detailed forecast covering political risk, economic outlook & industry performance, set against global economic trends"
CountryWatch Incorporated
- Country Reviews -- "Includes geographical, political, economic, corporate, & environmental information"
EIU: Economist Intelligence Unit (content no longer available)
- Country Report -- "Evaluates growth prospects, assesses opportunities and examines problems. Provides concise and lucid business-oriented analysis of the latest economic and political indicators."
Going Global
- Career Guides -- provide information for specific countries about employment trends & opportunities, financial considerations, interviewing advice, job application guidelines, job search resources, and work permits & visas"
Icon Group International, Inc. (no longer included?)
- Economic Studies -- "helps executives evaluate strategic investments in [each country]... The methodology decomposes a country’s strategic potential along two key dimensions: (1) latent demand, and (2) trade indicators."
- Economic Competitiveness -- Financial Returns, Labor Productivity, and International Gaps
IHS Global Insight, Inc.
- Country Monitor -- "In-depth economic analysis and detailed information. Reports analyze financial markets, political development, and investment opportunities. Forecasts and risks in the economy are evaluated."
MarketLine, a Datamonitor business
- Country Profiles -- "presents analysis of the political, economic, social, technological, legal, and environmental (PESTLE) aspects based on the country's strengths, challenges, and risks"
OECD: Organisation for Economic Cooperation & Development
- Economic Surveys for specific countries -- see OECD Economic Surveys
PRS Group, Inc.
- Political Risk Yearbook: Country Reports
Superintendent of Documents
- Background Notes on Countries of the World -- see also Background Notes (U.S. State Department)
-
Business Source Premier - Country Reports (EBSCOhost)select "Enhanced Business Searching Interface"
Browse or search Country Reports by country, region, or publisher
