Presentation Tips:  PEST Analysis

Another commonly used framework in consultant presentations is PEST analysis . PEST analysis is an external analysis that investigates four macro-environment factors: political, economic, social and technological . The goal is to helps managers better understand the market before making operational decisions.

The following chart summarizes some of the common elements that make up the four macro-environment factors:

I highly suggest managers or entrepreneurs to do this analysis before making important operational decisions. PEST analysis helps you better understand the risk and pitfalls for the environment you operate in. Finally, this is a good tool to identify macro-environment level opportunities and threats in SWOT analysis . I personally like to do the SWOT analysis together with PEST or include PEST within the SWOT chart.

Source & More Reading

http://www.marketingteacher.com/Lessons/lesson_PEST.htm

http://en.wikipedia.org/wiki/PEST_analysis

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