what is pest analysis
PEST Analysis. A PEST analysis is an analysis of the external macro-environment that affects all firms. P.E.S.T. is an acronym for the Political, Economic, Social, and Technological factors of the external macro-environment.Such external factors usually are beyond the firm's control and sometimes present themselves as threats.For this reason, some say that pest is an appropriate term for these factors.However, changes in the external environment also create new opportunities and the letters sometimes are rearranged to construct the more optimistic term of STEP analysis.or this reason, some say that pest is an appropriate term for these factors. However, changes in the external environment also create new opportunities and the letters sometimes are rearranged to construct the more optimistic term of STEP analysis.