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.