PESTEL Analysis
Introduction
The PEST analysis identifies the general environmental factors that affect companies. This analysis is carried out before carrying out the SWOT or SWOT (Strengths, Weaknesses, Opportunities and Threats), which the company presents within the framework of strategic planning. Pest is an acronym for "P**political, Eeconomic, Social and Tecological".[1] The PESTEL or PESTLE variants are also used, including the Llegal and Eological aspects. Some analysts add only the legal factor and rearrange the acronym to SLEPT.[2] The model can also be expanded to STEEPLE and STEEPLED, adding Ethical and Demographic factors.
Model elements
It is a useful strategic tool for understanding market cycles, a company's position or operational direction. It mainly analyzes relevant factors of the macro-environment.
The factors are classified into four blocks:
Model extension
The growing importance at the beginning of the century of environmental and ecological factors, which fuels the rise of green businesses, has led to the development of an updated version of the PEST model, called STEER, for the systematic analysis of Sociocultural, Technological, Economic, Ecological and Regulatory factors.
Other factors for new trends include:.
Business Observation Tool (BOT)
Environment analysis observation model for generating business ideas. The Business observation tool model is used as an alternative to the (PESTEL) for the identification and study of business environments. This contains factors related to the conditions of the business macro-environment and group work actions to strengthen the business idea studied. It is understood as the step prior to using business model tools.