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PEST Analysis Ms-Word Template

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PEST Analysis MS-Word Template

The PEST analysis template for MS-Word offers a PEST analysis 4-cell presentation format and can be pasted into
any MS-Word compatible document or report and edited from within Word.
Four individual PEST templates for MS-Word are provided.
PEST analysis is used to analyze the external environment. PEST stands for Political, Economic, Social and Technological; the four categories under which the external environmental factors are classified.
The four cells can be edited as the cells in any standard Word table would be. Simply type the various entries into the appropriate cell.

Why PEST Analysis?

It is important that prior to embarking on any strategic or market planning that the organization fully understands and takes into account the external environment within which the plan will be set.
The external environment consists of:

  • Micro-environment; customers, suppliers, competitors, distribution channels, etc.
  • Macro-environment; Political, Economic, Social and Technological factors and influences

The PEST analysis is normally used as a framework to complete the macro-environment analysis.
The PEST analysis effectively documents the big picture macro-environment within which the organization must operate and forms the backdrop against which the organization’s strategy plan should be developed.
The PEST analysis template structures the analysis and forces the individual or team to consider all of the factors than may influence or impinge on the organization as it seeks to develop and implement its strategic or marketing plan.
The completed PEST analysis template is used to document the outcome of the analysis and facilitates a review and discussion of theoutcome of the PEST analysis for rigor, completeness, consensus.

Political Factors

Political factors include government regulations and legal issues within which the organization must operate and include factors such as:

  • Tax policy,
  • political stability,
  • environmental issues,
  • regulatory framework,
  • employment legislation,
  • product approval requirements and processes,
  • trade barriers and tariffs, etc.

Economic Factors

Economic factors relate to the trading economy in home and export markets in the immediate and longer term and includes factors such as:

  • Cost and availability of raw materials,
  • interest and exchange rates,
  • current and forecasted inflation rates,
  • disposable incomes,
  • projected economic growth rates, etc.

Social Factors

Social factors include the demographic and cultural aspects of the environment and includes factors such as:

  • Demographic age distribution,
  • population growth projections,
  • lifestyle trends,
  • ethnic and religious factors,
  • environmental and sustainability attitudes,
  • consumer attitudes and role models, etc.

Technological Factors

Technological factors play a major role in lowering barriers to entry and providing competitive advantage and include such factors as:

  • Availability of technology,
  • replacement and alternative technologies,
  • maturity of technology,
  • technology access,
  • licensing and patents,
  • globalization factors
  • degree of manufacturing automation,
  • technology impact on distribution, etc.

How does PEST Analysis and SWOT Analysis Compare?

PEST analysis is appropriate for the big picture external macro environment analysis within which SWOT analysis provides an analysis of the external micro and internal environment and as such it is usual to complete the PEST analysis initially and to use the results as a backdrop and framework within which the SWOT analysis is then carried out.
PEST analysis usually involves factors over which the organization has very little influence, e.g. inflation rate, trade restrictions, population growth projections.
On the other hand, SWOT analysis deals with factors over which the organization can have a measure of control and influence in developing and executing the strategic plan, e.g. further developing and exploiting the organization’s strengths and taking action to minimize the impact of external threats or take advantage of identified opportunities.
While it is not essential to use either PEST or SWOT analysis they are most effective when the PEST analysis is completed first and the output of the PEST analysis provides an informed view of the external macro environment within which strengths, weakness, opportunities and threats are assessed.

Check out the PEST Analysis Chart Templates User Guide before purchasing!

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Our Boston Consulting Group (BCG) Growth-Share Matrix Templates can be used to generate a BCG Matrix.
Order the individual analysis templates that you require or alternatively order our Strategic Planning Package (includes SWOT, BCG and GE-McKinsey templates) and get up to 50% discount!

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