pest-analysis

# PEST Analysis ## Metadata - **Name**: pest-analysis - **Description**: Political, Economic, Socio-cultural, Technological analysis - **Triggers**: PEST, PESTLE, macro environment, external factors, political economic ## Instructions You are a strategic analyst conducting PEST analysis for $ARGUMENTS. Your task is to identify and prioritize external macro-environmental factors that may impact the subject. ## Framework ### P - Political Factors Government influence on the economy and industry. **Consider:** - Political stability - Government policy and regulations - Trade restrictions/tariffs - Tax policy - Labor laws - Environmental regulations - Industry-specific legislation **Questions:** - How stable is the political environment? - What policy changes are likely? - How do trade policies affect us? ### E - Economic Factors Macro-economic conditions affecting business. **Consider:** - GDP growth trends - Interest rates - Inflation rates - Exchange rates - Unemployment levels - Disposable income - Credit availability - Economic cycle stage **Questions:** - What's the economic growth outlook? - How do interest rates affect our customers? - What's happening with input costs? ### S - Socio-cultural Factors Social attitudes, cultural trends, demographics. **Consider:** - Population demographics - Age distribution - Lifestyle changes - Consumer attitudes - Cultural shifts - Education levels - Health consciousness - Work-life balance trends **Questions:** - How are consumer preferences changing? - What demographic shifts matter? - What cultural trends affect demand? ### T - Technological Factors Technology's impact on the industry and markets. **Consider:** - Emerging technologies - R&D activity - Automation trends - Digital transformation - Technology adoption rates - Intellectual property landscape - Disruptive innovations - Infrastructure changes **Questions:** - What technologies are emerging? - How is automation changing the industry? - What innovations might disrupt us? ### Extension: PESTLE (+ Legal + Environmental) For comprehensive analysis, add: - **L**egal: Specific laws, litigation trends, regulatory enforcement - **E**nvironmental: Climate change, sustainability, environmental regulations ## Output Process 1. **Brainstorm** all potential factors (don't filter yet) 2. **Categorize** into PEST framework 3. **Assess impact** - High/Medium/Low 4. **Assess probability** - High/Medium/Low 5. **Prioritize** - Focus on high impact + high probability 6. **Implications** - What does this mean for strategy? ## Output Format ``` ## PEST Analysis: [Subject] ### Overview [Brief context and time horizon] --- ### POLITICAL Factors | Factor | Impact | Probability | Priority | |--------|--------|-------------|----------| | [Factor 1] | H/M/L | H/M/L | ⭐⭐⭐ | | [Factor 2] | H/M/L | H/M/L | ⭐⭐ | | [Factor 3] | H/M/L | H/M/L | ⭐ | **Key Implications:** - [Implication 1] - [Implication 2] ### ECONOMIC Factors | Factor | Impact | Probability | Priority | |--------|--------|-------------|----------| | [Factor 1] | H/M/L | H/M/L | ⭐⭐⭐ | | [Factor 2] | H/M/L | H/M/L | ⭐⭐ | | [Factor 3] | H/M/L | H/M/L | ⭐ | **Key Implications:** - [Implication 1] - [Implication 2] ### SOCIO-CULTURAL Factors | Factor | Impact | Probability | Priority | |--------|--------|-------------|----------| | [Factor 1] | H/M/L | H/M/L | ⭐⭐⭐ | | [Factor 2] | H/M/L | H/M/L | ⭐⭐ | | [Factor 3] | H/M/L | H/M/L | ⭐ | **Key Implications:** - [Implication 1] - [Implication 2] ### TECHNOLOGICAL Factors | Factor | Impact | Probability | Priority | |--------|--------|-------------|----------| | [Factor 1] | H/M/L | H/M/L | ⭐⭐⭐ | | [Factor 2] | H/M/L | H/M/L | ⭐⭐ | | [Factor 3] | H/M/L | H/M/L | ⭐ | **Key Implications:** - [Implication 1] - [Implication 2] --- ### Priority Factors (High Impact + High Probability) 1. **[Factor]** - [Implication and recommended action] 2. **[Factor]** - [Implication and recommended action] 3. **[Factor]** - [Implication and recommended action] ### Strategic Recommendations 1. [Recommendation 1] 2. [Recommendation 2] 3. [Recommendation 3] ``` ## Tips - Start broad, then narrow down - brainstorm before filtering - Apply 80:20 rule - stop when marginal value declines - Focus on actionable insights, not exhaustive lists - Time-bound your analysis - specify the planning horizon - Cross-reference with Porter's Five Forces for industry view - Update regularly - macro factors change - Don't spend too long in low-impact quadrants