Ayoa’s PEST Analysis template will help you to make better decisions by identifying a range of external and internal factors that can affect your business.
PEST Analysis is known by many names (including SLEPT, PESTEL, and PESTLE Analysis, amongst others), but it’s a highly effective, yet simple analytical tool that can help businesses to plan more effectively and make smarter decisions by examining various factors that can affect the business. Thought to be created by the Harvard University professor, Francis Aguilar, in the late 1960s, a PEST Analysis requires you to analyze a combination of Political, Economical, Social or (Socio-Cultural), and Technological factors (which can be internal and external) to identify future opportunities, as well as any potential threats to your business.
PEST Analysis is often compared to other analytical tools, such as the SWOT Analysis and Porter’s Five Forces Model, and can be used effectively alongside them. Although they share many obvious similarities, the PEST Framework will provide you with a macro-analysis by looking at the bigger picture, while a SWOT Analysis will allow you to conduct a more in-depth micro-analysis of the external and internal factors that can affect your business.
Conducting a PEST Analysis can help any teams make more strategic business decisions in various situations, such as when developing new products and services or planning marketing and PR campaigns. However, both of these analysis tools are commonly used by marketing teams to help them carry out effective market research.
There are many advantages to using PEST Analysis, which is why it is still such a popular tool. By helping you to identify potential threats and opportunities early, you can be more strategic in your planning. As an example, if you identify a trend that has the opportunity to generate more revenue for your business, you can better prioritize future projects that will help you incorporate this trend, as well as put the brakes on any activities that are likely to fail.
The PEST Analysis template in Ayoa is already organized into the columns you need, so you and your team can quickly get started with your research. We’ve also included some examples of our own to help you get started.
To access the template, sign up to Ayoa for free. Once you've signed up, navigate to the homepage to create a new whiteboard, mind map or task board and choose this template from the library.
If you’re conducting your PEST Analysis as part of a team, organize a time and date for the meeting and let everyone know the four types of factors you will be examining to identify relevant strengths and opportunities. This will allow everyone to conduct their own research and come armed with ideas in advance.
POLITICAL. In this box, use sticky notes to add any politically motivated factors that could impact your business, such as potential changes in legislation, tax policy, and trade restrictions, as well as funding, initiatives, corporate social responsibility, and customer protection legislation. Don’t forget to take into account factors such as an upcoming election, as this may have a considerable impact on current policies.
ECONOMIC. Now it’s time to consider any factors relating to the economy, such as taxation, interest rates, unemployment levels, and the costs of labor and raw materials. Ask yourself: How stable is the economy? Do consumers have high amounts of disposable income during this time? Do they have access to credit?
SOCIO-CULTURAL. This includes attitudes and behaviors that can affect your target market (such as trends). During this stage of the analysis, consider factors such as their level of health and education, cultural taboos, religious beliefs, employment trends and lifestyle choices. You also need to ask yourself if any of this would change if you examined different age groups.
TECHNOLOGICAL. As the name suggests, the final stage will require you to consider technological advances that can affect the way you create products and services and distribute these to your customers. Ask yourself whether there are new technologies you could be using (such as automation) and whether your competitors have access to them. You should also take into consideration any legislation surrounding these technologies.
When your PEST Analysis is complete, use the information you gathered to help you plan future projects and actions, as well as determine which ones should be avoided for the time being.