For the strategic management of enterprises, there are many analysis methods, and the most commonly used is the PEST analysis method. It is a method to analyze the external macro-environment of an enterprise based on the company's strategic perspective from four aspects: politics, economics, society, and technology. This analysis method can mainly help enterprises find their own advantages and integrate resources to form the enterprise's strategic plan. This article will share tips on making PEST analysis methods, and share a detailed PEST analysis example to help you create a comprehensive PEST analysis.
What is PEST Analysis
First, clarify the meaning of PEST analysis. P stands for politics, E stands for economy, S stands for society, and T stands for technology. Similar to the PESTLE analysis, the PEST analysis method is not only an essential tool for enterprises, but also an analytical tool for personal development decisions.
In the enterprise's PEST analysis model, the variables of P political factors mainly include government laws and regulations such as building regulations, employee rights, industrial policies, and investment environment; the variables of E economic factors may include the stability of the current economy, unemployment rate, and exchange rate; S Variables for social factors mainly include population growth rates, age distribution, social taboos or religious beliefs relevant to a particular market; variables for T-technical factors may include any new technologies that businesses can take advantage of and how technological changes change socio-cultural attitudes, such as remote working growth of.
In the personal PEST analysis model, the variable factor analysis method of the four major PEST factors is also applicable and is widely used in personal career planning.
In general, by conducting PEST analysis, organizations can identify, evaluate and monitor these factors and use their analysis to improve decision-making in key areas, providing various macro insights for the enterprise's strategic planning, budget and resource allocation, and technology investment. A strategic-level snapshot of how environmental factors impact current and future operations.
Pest Analysis Example: Factors to be Considered
When analyzing the influencing factors of PEST, how to identify the factors? Let’s take a practical PEST analysis example, let’s say you are a car manufacturer that is considering bringing a new electric vehicle to the current market. Your product development PEST analysis might look like this:
Political factors
Government policy is to reduce petrol car ownership to less than 50% over the next decade
$5,00 government subsidy for every hybrid or electric vehicle purchased
Electric vehicles are exempt from emissions tax
New 20-year deal with the Middle East secures the oil supply chain
Economic factors
Inflation is currently low but is expected to rise over the next 12 months
Electricity supply is stable but expensive
Social factors
The trend towards eco-friendly sourcing is growing and is supported by several celebrity influencers
Younger buyers entering the market want cleaner cars
People see electric cars as status symbols in urban areas
Technical factors
Limited infrastructure, slow growth in national charging stations
Battery technology is relatively static and unlikely to lead to faster battery charging shortly
Charging stations are becoming more common in the residential market
From the above PEST analysis, if you are considering a product development strategy for bringing electric vehicles to market, it is important to identify and analyze environmental factors. As with merger or acquisition opportunities, there are legal factors to consider.
Of course, you may also want to check the ethical stance of other companies to ensure that any of their actions will not affect your corporate reputation. In this case, you need to add the variable factor of ethics to the PSET model analysis.
The picture above is a complete PEST analysis model of new energy vehicles. Through the analysis of the politics, economy, society, and technology of new energy vehicles, we can see the advantages and disadvantages of bringing new energy vehicles to the market. We can provide the following One-step promotion strategy provides a strong basis for decision-making.
Steps to Draw PEST Analysis Online
The method of making a PEST analysis model is very simple. Through the following steps, you can easily draw a professional and practical PEST analysis diagram. It is also applicable to other industries. Let us use the Boardmix whiteboard to draw the PSET analysis model online.
Boardmix online whiteboard is an online collaborative whiteboard that integrates a free layout, brushes, notes, mind maps, and other creative expressions. It supports online multi-person real-time collaboration and online meetings and provides a wireless canvas and rich drawing functions, such as adding Labels, shapes, flowcharts, and more. It can be said that using the Boardmix whiteboard, you can freely draw the content required for learning and work, which greatly improves work efficiency. The following introduces the methods and techniques for drawing PEST analysis models on the Boardmix whiteboard. Let’s experience the charm of this software together. Click Boardmix to use it for free!
Using Boardmix’s community templates
Open the official website of Boardmix Whiteboard on the browser, log in to your account, select the PEST analysis template in the template community of Boardmix Whiteboard, and modify the content in the template.
Custom modification content
According to the product category you want to analyze, modify the contents of the four PEST factors on the model and select the section under the corresponding dimension to modify. You can modify the fill background, shape, text, and other attributes of the template on the Boardmix whiteboard.
What is worthy of praise is that the Boardmix whiteboard supports online real-time editing. You can invite colleagues on the same project to perform real-time operations on the content in the PEST analysis and enjoy the process of colliding ideas and analysis together. At this point, just click Share in the upper right corner of Boardmix to generate a sharing link.
Support sharing and exporting PEST models
After completing the factor analysis of the four dimensions of PEST, the PEST analysis model is completed. At this time, you can choose to export it to different formats such as PNG, PDF, and JPG, which is very convenient for local storage.
Conlusion
"If you want to do your job well, you must first sharpen your tools." Boardmix whiteboard can not only make PEST analysis models but also draw mind maps, flow charts, four-quadrant work rules, Porter's five forces model, personal work daily reports, etc., comprehensively Improving the quality and efficiency of work and study.
Come and get Boardmix, this high-looking tool! Click the "Use Online" button below to experience it now!
