Course Content
Strategic Management: Introduction
Strategic Management: Concept, Process, Decision and Types
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Strategies :Introduction
Basic Terminology
Terminology
Schools of thought on Strategy formulation
Characteristics of Strategic Decision
Strategic Decision Making Technique : Devil’s Advocacy
Modes of Strategic Decision Making: Mintzberg
Strategic Planning
External Strategic Analysis
External Analysis, PEST, Porter’s Approach to Industry Analysis
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What is Strategic Analysis?
PEST Analysis: Francis Aguilar: 1967
General Competitive Strategies: Michael Porter: 1985
Internal Strategy Analysis
Internal Strategy Analysis – Resource-Based Approach, Value Chain Analysis
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Resource-Based Theory for Competitive Advantage: Robert M. Grant: 1991
VRIO Framework : Jay Barney: 1995
–GAP Analysis
Value Chain Analysis: Michael Porter: 1985
Strategy Formulation
Strategy Formulation: SWOT Analysis, Corporate Strategy – Growth, Stability, Retrenchment, Integration, and Diversification
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SWOT Analysis: Albert Humphrey
TOWS Matrix: Heinz Weirich
Corporate-Level Strategies :Introduction
Classification of Corporate-Level Strategies
Directional Corporate Strategies
Turnaround Strategy & Business Process Reengineering
Classification of Integration and Diversification Strategy
Corporate Diversification
Business Portfolio Analysis
Business Portfolio Analysis - BCG, GE Business Model, Ansoff’s Product Market Growth Matrix
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What is a Portfolio Matrix?
BCG Matrix
Ansoff’s Product Market Growth Matrix : Harry Igor Ansoff : 1957
Market Evolution Matrix: C.W. Hoffer and R. Schendel
Strategy Implementation
Strategy Implementation: Challenges of Change, Developing Programs, McKinsey 7s Framework
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Strategic Drift
Mintzberg’s View on Realized Strategy
Parenting Fit Matrix
🔴 Red Ocean Strategy vs 🔵 Blue Ocean Strategy
4-Box Business Model: Mark W. Johnson: 2010
Strategy Diamond: Hambrick and Fredrickson
7-S Approach : 1980 : McKinsey
Organizational Structure & Strategy Fit
Final Evaluation
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Rapid Fire : Strategic Management
Unit VI: Strategic Management

📘 PEST Analysis: Francis Aguilar: 1967

I. Introduction

Francis Aguilar

  1. PEST analysis was developed by Harvard University Professor Francis Aguilar in 1967.
  2. Originally termed “ETPS” (Economic, Technical, Political, and Social), it was introduced in his book, Scanning the Business Environment, as a framework for analyzing macro-environmental factors in strategic management.
  3. PEST Analysis is a strategic tool used by businesses to analyze the external macro-environment in which they operate.
  4. It stands for Political, Economic, Social, and Technological factors, which are the four main categories of external influences that can affect a company’s performance.

🧩 II. The Four Factors of PEST

Factor Description Example
Political Government policies, regulations, political stability Tax incentives for green tech, tariffs on imports
Economic Economic conditions, inflation, interest rates, consumer spending Recession reducing consumer spending, rising energy prices
Social Demographic shifts, consumer preferences, social trends Health trends, aging population
Technological Technological advancements, innovation, automation AI, blockchain, e-commerce, renewable energy tech

📊 III. How to Use PEST Analysis?

The steps of PEST analysis are typically carried out in a systematic order to ensure that the external environmental factors are understood and their impact on the organization is analyzed properly. The correct sequence is:

 

A. Understand a category’s relevant trends – The first step is identifying the key trends in Political, Economic, Social, and Technological factors that could affect the organization.

B. Understand trends interdependencies – Next, examine how these trends are related and how they might influence each other.

B. Distill lively issues from the identified trends – From the trends, pinpoint the most critical or pressing issues that need attention.

D. Forecast the direction of issues – Predict how these issues may evolve or change over time.

E. Derive implications for the organization – Finally, understand the consequences of these trends and issues for the organization and strategize accordingly.

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