Page 13 - Wells Fargo Bank (C) Teaching Note

PEST

PEST (PESTEL) is a diagnostic tool used in strategy to

analyse the macro environments and identify how future

trends in the political, economic, social, technological,

environmental and legal environments might impact

individual organisations within an industry.

Organisations study the key drivers of change behind the

PESTEL factors. These key drivers of change constitute

opportunities and threats in a firm’s external

environment and industry which can be overcome by

focusing on strengths and eliminating weaknesses.