What is the PEST model used for?

PEST Analysis (political, economic, social and technological) is a management method whereby an organization can assess major external factors that influence its operation in order to become more competitive in the market. As described by the acronym, those four areas are central to this model.

What is a PEST diagram?

PEST chart is a short form for “Political, Economic, Social and Technological analysis chart” and it describes a frame work of macro-environmental factors used in the environmental strategies. PEST analysis would be able to complement the SWOT analysis in a strategic planning process.

How do you use a pestle model?

The traditional use of PESTLE in change management is as follows:

1. Step 1 – List external PESTLE factors for the business.
2. Step 2 – Identify the implications of each PESTLE factor on the business.
3. Step 3 – Rate the impact and likelihood.
4. Step 4 – Further action.

What is the importance of PEST analysis?

PEST Analysis is useful for four main reasons: It enables you to spot business or personal opportunities, and gives you advanced warning of any significant threats. It reveals the direction of change within your business environment, so you can adapt what you’re doing to work with the change, rather than against it.

Why it is important to conduct a PEST analysis?

The main purpose of PEST analysis is to understand what external forces may affect your organization and how those factors could create opportunities or threats to your business. PEST analysis helps you: Understand current external influences on the business so you can work on facts rather than assumptions.

Why is a pest analysis important?

Who created pestle model?

Francis Aguilar
The PESTLE analysis was invented over 50 years ago by Francis Aguilar, who was an American scholar whose expertise was in strategic planning. In the late 1960s, Aguilar published a book titled Scanning the Business Environment in which the now known PESTLE tool was first identified.