What kind of techniques are used to conduct a PEST analysis?

In conducting a PEST analysis, the primary focus is on collecting data regarding the external environmental factors that can impact an organization. PEST stands for Political, Economic, Social, and Technological factors, which are all elements that pertain to the broader environment outside of the company. By gathering relevant information on these external forces, organizations can identify potential opportunities and threats that could influence strategic planning.

This technique contrasts with the other choices, which focus on different aspects of analysis. Internal audits and performance reviews primarily assess internal organizational health and effectiveness rather than external environmental factors. Comparative studies of market competitors look at competition and market positioning but do not provide a comprehensive understanding of the broader environment. Similarly, surveys of employee satisfaction focus on the internal perceptions and experiences of employees, making them irrelevant for a PEST analysis. Therefore, collecting data on external environmental factors is the essence of what makes a PEST analysis valuable for strategic decision-making.