This document discusses the PEST analysis framework and outlines its benefits and process. PEST analysis provides a logical structure that aids understanding, presentation, discussion and decision making. It encourages proactive thinking over instinctive reactions. The process involves identifying external factors like political, economic, social and technological that influence an organization, determining which factors apply, and analyzing the impacts of the most relevant factors to identify implications.

1. PEST – Why do it?
• It gives a logical structure that helps
understanding, presentation, discussion and
decision-making
• It encourages proactive thinking rather than
relying on habitual or instinctive reactions
• It helps identify some of the most important
factors before conducting a SWOT analysis
• It helps you to think ahead about a whole range
of factors influencing organisational development

2. PEST – Three stages
• Collect information about the factors that you
have identified as important
• Identify the factors that apply to your business
• Analyse the impacts of the factors you deem
most relevant, and identify the implications