The 4 factors of a PEST analysis

1 🗳 Political

What governments, government policies, political elements, or groups could benefit or disrupt our success?

2 🌱 Economic

What economic factors might impact our company’s pricing, revenue, and costs?

3 🗣 Social

How do our customers’ and potential customers’ demographic trends and values influence their buying habits?

4 💻 Technological

How might existing or future technology impact our growth and success?

How to run a PEST analysis

1 💬 Step 1: Brainstorm

To get started, brainstorm the various PEST factors — political, economic, social, and technological — that might impact your business. Ask each team member to come up with a few ideas for each of the 4 factors.

2 📊 Step 2: Rank

With these ideas in place, it’s time to rank these factors based on their expected level of impact on the organization. Allow people the time and space to change their mind.

3 🤝 Step 3: Share

Now it’s time to share your completed PEST analysis with stakeholders.

4 ♻️ Step 4: Repeat

Finally, your organization needs to maintain awareness of these various factors and plan to accommodate for them in the future.