Factors in PEST analysis

PEST stands for

Political

Economic

Social

Technological

 

Political

Political and legal factors affecting organization:

• Health and safety regulation
• Data protection
• Tax law
• Legal framework
• Policies and Bylaws
• Political parties
• Form of government

Economic

Economic factors affecting organization:

• Inflation
• Interest rates
• Taxes
• Government spending
• GDP
• Trade policy
• Business cycle

Social

Social factors affecting organization:

• Employment
• Wealth
• Growth
• Age
• Ethnicity
• Social structure

Technological

Technological factors affecting organization:

• Production capacity
• How the products are produced
• Means and extent of communication
• Firms are managed
• Costs
• Efficiency