It is crucial to describe the subject for the PEST analysis clearly so that people, contributing to the analysis, and those interpreting the results from PEST analysis, could understand the purpose of the PEST assessment and its implications (Jan, 2002).
In conducting PEST analysis, it is required to consider each PEST factor as they all play a part in determining the overall business environment. After the key trends have been identified, one can follow the steps mentioned below to construct a good PEST analysis :
Decide how the information is to be collected and by whom (often a team approach is much more powerful than one person’s view).
Check first how much of the information needed has already been collected or is available within the organisation in reports, memos and planning documents. In the context of a large organisation it may be wise to consult those with expertise in specific areas and delegate the collection of some categories of information to them.
Identify appropriate sources of information.
Hard factual information, such as employment figures, inflation and interest rates, and demographics, is often easily available from official statistical sources and reference books. A wide range of additional sources, such as newspapers, magazines, trade journals, research reports, web sites, discussion boards and email newsletters, will be needed for softer information such as consumer attitudes and public perceptions. You may also wish to consult consultants, researchers and known experts in the relevant fields to supplement published material.