Strategic Planning Frequently Asked Questions and Answers

What Is the PEST Analysis or Model?

The PEST Analysis or model is another tool, quite similar to the SWOT model, but is more specialized and focused on the external environment and important factors "out there" that can affect present and future business. The PEST acronym stands for:

• Political
• Economic
• Social
• Technological

Of course, once political, economic, social and technological factors are identified (which is the first step), the next step is to create a business strategy or strategies that will take advantage of these trends and changes, while minimizing risk to the company from those trends and changes.