Process - Top Tips - PESTLE


This document is designed as a quick reference guide to PEST Analysis

This will enable you to gain knowledge of a particular skill, task or process.

This means you can quickly find the key information that you need and refer to it on an ongoing basis whenever you need to refresh your knowledge.



PEST Analysis is a simple and widely-used tool that helps you understand the big picture of the Political, Economic, Social andTechnological environment you are operating in. By using PEST Analysis, you ensure that what you are doing is aligned with the forces of change that are affecting our world. By taking advantage of change, you are much more likely to be successful than if your activities oppose it.

Process - Top Tips - PESTLE


What you need to knowÉ

The PEST analysis is a useful tool for understanding market growth or decline, and as such the position, potential and direction your store. The

PEST analysis headings are a framework for reviewing a situation, and can also, like SWOT be used to review a strategy or direction of your business.

Completing a PEST analysis is very simple, and works well in meetings. Use

PEST analysis for business and strategic planning and the business planning for your store.

When completing a PEST Analysis you should consider the following factors:



     Government type and stability

     Freedom of press, rule of law and levels of bureaucracy and corruption and de-regulation trends

     Current legislation

     Tax policy, and trade controls

     Environmental and consumer-protection legislation



     Likely impact of technological or other change on the economy

     Likely changes in the economic environment

     Stage of business cycle

     Current and project economic growth, inflation and interest rates


     Seasonality / weather issues







     Population growth rate and age profile

     Population health, education and social mobility, and attitudes to these

     Population employment patterns, job market freedom and attitudes to work

     Lifestyle choices and attitudes to these

     Consumer buying patterns

     Major events and influences



     Impact of emerging technologies

     Impact of Internet, reduction in communications costs and increased remote working

     Access to technology

Completing PEST Analysis

Create a document with the headings Political, Economic, Social and

Technological. If you are working with a group a large piece of paper on the wall works well!

Using the headings discuss the individual influences on your business.

Gather as much information regarding the headings as possible; some may fall into groups and this is fine. Use the information to discuss how each of the headings may influence your business.

Process - Top Tips - PESTLE




As well as PEST analysis, you may also have come across SWOT analysis, a tool for analysing the strengths, weaknesses, opportunities and threats that relate to your business. So, is one better than the other? Or should these tools be used in conjunction with one another?


Both tools have can be useful so itÕs important to understand the differences between them and how they can be used together.

A PEST analysis assesses a market, including competitors, from the standpoint of a particular proposition or business and is ideal for business development assessment and decision making. SWOT analysis is an assessment of a specific business unit, whether your own business or a competitors.


It can be useful to complete a PEST analysis before SWOT but not generally the other way around. This is because PEST helps to identify factors that may form part of your SWOT analysis.