The analyses that PEST performs on a given sector includes an investigation into important factors that are influencing a company's operation and affecting the industry as a whole. PEST stands for political, economic, laws and regulations, trade restrictions and tariffs etc. In regards to economic factors, this consists of the changes that are present in the wider economy, such as interest rates, inflation rates, economic growth and exchange rates. Social factors are also reviewed, which consists of population growth, age distribution, health consciousness and changes in buying patterns and interests. The analysis of technological factors includes researching the application of new ideas and inventions, like automation, R&D activity, rate of technology change and technology incentives.
The PEST analysis provided by Synergyst is a great tool for policy makers and managers to use. It will allow them to have a full analysis of the industry's driving forces that are influencing other similar businesses, as well as the entire industry. A short profile is also included of the current market, future prospects and competition within the market.