P.E.S.T. Situational Analysis

Purpose:

The purpose of a PEST situational analysis tool is to help leaders and organizations assess external factors that may impact their decision-making, strategy, or crisis response. It helps prevent blindspots and enhances communication and planning.

PEST is an acronym for four key macro-environmental factors:

• Political – Government regulations, policies, stability, and legal issues.
• Economic – Market trends, inflation, interest rates, and overall economic health.
• Social – Cultural trends, demographics, public sentiment, and societal attitudes.
• Technological – Emerging technologies, digital transformation, and innovation trends.

Directions:

Use the template below to conduct a situational analysis on an element in your life. In each box, try to list as many corresponding items within that section. Try to be as unrestricted as possible in your thought process to give an unfiltered list of items in each category. Completing this exercise will provide a detailed evaluation of large scale environmental factors to make strategic decisions.