PEST Analysis - Meaning & Definition

Published by MBA Skool Team in Marketing and Strategy Terms Last Updated: May 09, 2024Read time:

What is PEST Analysis?

PEST analysis is the analysis or study of the external macro-environment in which the company operates and is expressed in terms of political, economic, social and technological factors. PEST analysis helps in understanding the market conditions and help the organization do their business accordingly.

P - Political

E - Economic

S - Social

T - Technological

Sometimes it is extended to PESTEL where the E and L stand for Environmental and Legal respectively.

Example for Telecommunication Company


This article has been researched & authored by the Business Concepts Team which comprises of MBA students, management professionals, and industry experts. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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