PEST & SWOT Analysis Research Guide

PEST Analysis Overview - Social & Technological

Social Factors

Social factors include the demographic and cultural aspects of the external macroenvironment. These factors affect customer needs and the size of potential markets. Some social factors include:

  • health consciousness
  • population growth rate
  • age distribution
  • career attitudes
  • emphasis on safety

Technological Factors

Technological factors can lower barriers to entry, reduce minimum efficient production levels, and influence outsourcing decisions. Some technological factors include:

  • R&D activity
  • automation
  • technology incentives
  • rate of technological change

Source: QuickMBA Strategic Management PEST Analysis

PEST Analysis Overview - Political & Economic

A PEST analysis examines the Political, Economic, Social, and Technological environments that affect industries and companies.   

Here's a brief description of what constitute PEST factors:

Political Factors

Political factors include government regulations and legal issues and define both formal and informal rules under which the firm must operate. Some examples include:

  • tax policy
  • employment laws
  • environmental regulations
  • trade restrictions and tariffs
  • political stability

Economic Factors

Economic factors affect the purchasing power of potential customers and the firm's cost of capital. The following are examples of factors in the macroeconomy:

  • economic growth
  • interest rates
  • exchange rates
  • inflation rate

Source: QuickMBA Strategic Management PEST Analysis