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
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
Subject of PEST analysis: (define
the standpoint and market here)
legislation home market
bodies and processes
term and change
grants and initiatives
international pressure groups
type and stability
Freedom of press, rule of law and levels of bureaucracy and
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
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
economies and trends
specific to product/services
routes and distribution trends
growth trends (various countries), Taxation,
attitudes and opinions
affecting social factors
company, technology image
access and trends
Demographics (age, gender, race, family size, etc.)
Trends, fads, diversity, immigration/emigration
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
Does the population have a strong/weak opinion on green issues?
manufacturing maturity and capacity
access, licensing, patents
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