PEST analysis's Creator
The earliest reference to tools and techniques for “Scanning the Business Environment” appears to be by Francis J. Aguilar (1967). He is an Harvard professor, well-known in strategic planning and general management...
Description of the PEST analysis
PEST analysis is a useful tool used to identify the key external factors (political, economic, social and technological) that can affect an organization, its projects and/or its strategy.
The outcome of PEST is an understanding of the overall picture surrounding the company.
In order to perform a thorough PEST analysis, it is critical to fully understand each of the letters completely.
The factors in that category help you determine the extent to which a government may influence some specific industries.
These factors take into view the economic conditions in place in a country and how the global economic scenarios might have an effect in the future.
These factors examine the social environment of the country, and look into the cultural trends, demographics, population analytics and so on.
These factors relate to innovations in technology that may affect the industry and the market favorably or unfavorably.
PEST analysis is often used in scenarios where:
a new location, product or service is considered;
a potential acquisition or merger is judged;
or the current relationship of a business, product or service is evaluated.