Introverted strategic planning that focuses exclusively on the organisation itself is doomed to failure.
All organisations, irrespective of size, operate within a macro-environment over which they have little control.
PEST analysis (Political, Economic, Social and Technological analysis) provides a useful framework of macro-environmental factors used in the environmental analysis component of strategic planning.
The output from the PEST analysis provides a good background against which to proceed with a SWOT analysis to evaluate the Strengths, Weaknesses, Opportunities, and Threats of the organization.
The results of the PEST and SWOT analysis can inform later steps in planning to achieve objectives, which is covered in our Strategic Planning Workbook .