PEST Analysis Template

Other than the four main headings, the questions and issues in the template below are examples and not exhaustive - add your own and amend these prompts to suit your situation, the experience and skill level of whoever is completing the analysis, and what you aim to produce from the analysis.

If Environmental is a more relevant heading than Economic, then substitute it. Ensure you consider the three additional aspects, such as : Ecological, Legislative, and Industry Analysis.

The analysis can be converted into a more scientific measurement by scoring the items in each of the sections. There is are established good or bad reference points - these are for you to decide. Scoring is particularly beneficial if more than one market is being analyzed, for the purpose of comparing which market or opportunity holds most potential and/or obstacles. This is useful when considering business development and investment options, i.e., whether to develop market A or B; whether to concentrate on local distribution or export; whether to acquire company X or company Y., etc. If helpful when comparing more than one different market analysis, scoring can also be weighted according to the more or less significant factors.


Subject of PEST analysis: (define the standpoint and market here)



  • ecological/environmental issues
  • current legislation home market
  • future legislation
  • European/international legislation
  • regulatory bodies and processes
  • government policies
  • government term and change
  • trading policies
  • funding, grants and initiatives
  • home market lobbying/pressure groups
  • international pressure groups
  •  Government type and stability
     Freedom of press, rule of law and levels of bureaucracy and corruption
     Regulation and de-regulation trends
     Social and employment legislation
     Tax policy, and trade and tariff controls
     Environmental and consumer-protection legislation
     Likely changes in the political environment
     How stable is the political environment?
     Will government policy influence laws that regulate or tax your business?
     What is the government's position on marketing ethics?
     What is the government's policy on the economy?
     Does the government have a view on culture and religion?
     Is the government involved in trading agreements such


  • home economy situation
  • home economy trends
  • overseas economies and trends
  • general taxation issues
  • taxation specific to product/services
  • seasonality/weather issues
  • market and trade cycles
  • specific industry factors
  • market routes and distribution trends
  • customer/end-user drivers
  • interest and exchange rates
  •  Economic growth trends (various countries), Taxation,
     Disposable income
     Job growth/unemployment
     Exchange rates
     Tariffs
     Inflation
     Consumer confidence
     Production levels.


  • lifestyle trends
  • demographics
  • consumer attitudes and opinions
  • media views
  • law changes affecting social factors
  • brand, company, technology image
  • consumer buying patterns
  • fashion and role models
  • major events and influences
  • buying access and trends
  • ethnic/religious factors
  • advertising and publicity  Demographics (age, gender, race, family size, etc.)
     Lifestyle changes
     Population shifts
     Trends, fads, diversity, immigration/emigration
     Living standards
     Attitudes to work and leisure activities
     Occupations, and earning capacity
     What is the dominant religion?
     What are attitudes to foreign products and services?
     Does language impact upon the diffusion of products onto markets?
     How much time do consumers have for leisure?
     What are the roles of men and women within society?
     How long are the population living? Are the older generations wealthy?
     Does the population have a strong/weak opinion on green issues?


  • competing technology development
  • research funding
  • associated/dependent technologies
  • replacement technology/solutions
  • maturity of technology
  • manufacturing maturity and capacity
  • information and communications
  • consumer buying mechanisms/technology
  • technology legislation
  • innovation potential
  • technology access, licensing, patents
  • intellectual property issues  Technology is vital for competitive advantage, and is a major driver of globalization. Consider the following points:
     Does technology allow for products and services to be made more cheaply, and of a better quality?
     Do the technologies offer consumers and businesses more innovative products and services such as Internet banking, new generation mobile telephones, etc?
     How is distribution changed by new technologies e.g. books via the Internet, flight tickets, auctions, etc?
     Does technology offer companies a new way to communicate with consumers e.g. banners, Customer Relationship Management (CRM), etc

Adapted From cch/BOT