Why the slightly negative connotations of PEST have proven to be more popular than STEP is not known. In the 1980s, several other authors including Fahey, Narayanan, Morrison, Renfro, Boucher, Mecca and Porter included variations of the taxonomy classifications in a variety of orders: PEST, PESTLE, STEEPLE etc. Thereafter, this ‘macro external environment analysis’, or ‘environmental scanning for change’, was modified yet again to become a so-called STEPE analysis (the Social, Technical, Economic, Political, and Ecological taxonomies).
Shortly after its publication, Arnold Brown for the Institute of Life Insurance (in the US) reorganized it as ‘STEP’ (Strategic Trend Evaluation Process) as a way to organise the results of his environmental scanning.
Aguilar (1967) who discusses ‘ETPS’ – a mnemonic for the four sectors of his taxonomy of the environment: Economic, Technical, Political, and Social. The term PESTLE has been used regularly in the last 10+ years and its true history is difficult to establish.įrom our research, the earliest know reference to tools and techniques for ‘Scanning the Business Environment’ appears to be by Francis J. So where did the term PEST or PESTLE derive? What were the origins?
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Use of PESTLE helps you break free of assumptions, and helps you quickly adapt to the realities of the new environment Thirdly, PESTLE is useful when you start a new product or service.Secondly, good use of PESTLE analysis helps you avoid taking action that is likely to lead to failure for reasons beyond your control.By taking advantage of change, you are much more likely to be successful than if your activities oppose it Firstly, by making effective use of PESTLE analysis, you ensure that what you are doing is aligned positively with the powerful forces of change that are affecting our working environment.It is important to take into account PESTLE factors for the following main reasons:
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Download PDF versions of these templates.PESTLE Analysis on an HR department or other internal function.Jump straight to the FREE PESTLE Template (below).Visit the article home page for all of our articles and content This page has been developed to help and support anyone with activities or projects which require use of the PESTLE analysis tool to undertake an environmental scan of an organizations operating environment. These are often factors which are beyond the control or influence of a business, however are important to be aware of when doing product development, business or strategy planning. Originally designed as a business environmental scan, the PEST or PESTLE analysis is an analysis of the external macro environment (big picture) in which a business operates. This is now old content please follow the navigation at the top of the page for our new content History of the PESTLE analysis (PEST Analysis) This page has been relocated to our new pestle microsite – where it is easier to navigate and print the elements of interest – please go to – Home/ History of Pest analysis – Introduction to the PESTLE analysis – PESTLE analysis templates – HR example of a PESTLE application – PESTLE analysis in Schools & Education Use the menu above to navigate through this PESTLE analysis microsite. This popular page has now been improved and is split into more easily digested chunks. Welcome to our new microsite on the PESTLE analysis. PESTLE Analysis micro site – History – Introduction – Templates – HR example – Schools & Education – ETPS – PESTEL – PESTLEE – PESTLIED – SLEPT – STEEPLE – STEP – STEPE – PEST-G – PEST-E – The Environment Scan – Environmental Organizational Scanning PESTLE Analysis Tool (PEST Analysis) – History and Templates
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