PEST
Business & Finance abbreviation · Management & Strategy
| Stands for | Political, economic, social and technological |
|---|---|
| Categories | Business & Finance |
PEST stands for Political, economic, social and technological, a management & strategy abbreviation.
Framework for scanning the external macro-environment of a business by grouping outside forces into four categories. Analysts use it in market-entry studies and strategic plans to identify trends, such as new regulation or demographic shifts, that the company cannot control but must respond to.
Example: A PEST review of the Brazilian market flagged import tariffs, high interest rates and rapid smartphone adoption as the key factors.
Usage notes
Harvard professor Francis Aguilar is often credited with the precursor, called ETPS, in his 1967 book Scanning the Business Environment. PEST is frequently expanded to PESTLE or PESTEL (adding legal and environmental factors) and STEEPLE (adding ethics). Usually pronounced as a word. Unlike SWOT, PEST looks only at external factors.
Related abbreviations
More management & strategy abbreviations
- MoM – Minutes of meeting
- MVP – Minimum viable product
- OEE – Overall equipment effectiveness
- OGSM – Objectives, goals, strategies and measures
- OKR – Objectives and key results
- PDCA – Plan-do-check-act
- PESTLE – Political, economic, social, technological, legal and environmental
- PMF – Product-market fit
- QA – Quality assurance (software)
- QBR – Quarterly business review
- QC – Quality control
- R&D – Research and development