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PEST analysis and its derivatives
Such a process is required for an organisation to be continually aware of external factors within its general or industry environment in order to adapt or perhaps change its course of action as a result of such analysis for instance to protect against threats or grasp new opportunities.
Environmental analysis must be a continuous activity for management, particularly within uncertain or complex environments; many of the components used within the models discussed below are interrelated and will affect one another.
Models like PEST or SLEPT analysis and other derivatives of these for example PESTLE or SLEEPT or STEEPLE can be used for analysing the general or industry environment. Models are suitable because they analyse a range of general environmental factors that help management concentrate and focus on factors which influence organisation. An illustration of an industry analysis using acronym SLEPT is explained below. The longest derivative of SLEPT is 'STEEPLE', the 2 extra Es include ethical factors for instance morally acceptable behaviour and ecological factors for example 'environmentalist 'or green issues.
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