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What Is PEST Analysis?

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What Is PEST Analysis? Its Applications and Uses in Business

Investopedia / Ellen Lindner

PEST analysis (political, economic, social, and technological) is a management method whereby an organization can assess major external factors that influence its operation in order to become more competitive in the market. As described by the acronym, those four areas are central to this model.

A popular variation on the PEST analysis format, especially in the U.K., is the PESTLE strategic planning approach, which includes the additional aspects of legal and environmental.

Key Takeaways

• PEST analysis stands for political, economic, social, and technological.
• This type of analysis is used to gauge external factors that could impact the profitability of a company.
• Generally, it is more effective with larger organizations that are more likely to experience the effects of macro events.
• PEST analysis is commonly used in conjunction with SWOT analysis, which stands for strengths, weaknesses, opportunities, and threats.

Understanding PEST Analysis

It is believed that PEST analysis was first introduced under the name ETPS by Harvard professor Francis J. Aguilar. In the 1967 publication "Scanning the Business Environment," Aguilar presented the economic, technical, political, and social factors as being major influences on the business environment. Subsequently, the letters were rearranged to create a convenient and quirky acronym used today.

The core of PEST analysis is the belief that a comprehensive assessment of the major areas of influence that affect the sector in which an organization is positioned, as well as the organization itself, can facilitate more effective strategic planning.

This planning can be undertaken to maximize the organization’s ability to capitalize on conditions as they exist and to be forewarned of and better prepared for imminent changes, allowing the organization to stay ahead of competitors.

Components of PEST Analysis

Political: The political aspect of PEST analysis focuses on the areas in which government policy and/or changes in legislation affect the economy, the specific industry, and the organization in question. Areas of policy that may particularly affect an organization include tax and employment laws. The general political climate of a nation or region, as well as international relations , can also greatly influence the organization.

Economic: The economic portion of the analysis targets the key factors of interest and exchange rates , economic growth, supply and demand , inflation , and recession.

Social: The social factors that may be included in a PEST analysis are demographics and age distribution, cultural attitudes, and workplace and lifestyle trends.

Technological: The technological component considers the specific role and development of technologies within the sector and organization, as well as the wider uses, trends, and changes in technology. Government spending on technological research may also be a point of interest in this area.

Applications of PEST Analysis

PEST analysis can assist an organization in recognizing and thereby capitalizing on opportunities offered by existing conditions in the business environment. It can also be used for identifying current or possible future challenges, allowing for effective planning of how to best manage these challenges.

PEST analysis can also be applied in assessing the in-house structure of an organization in order to identify strengths and weaknesses in its internal politics, economic outlook , social climate, and technology base. The results of this analysis can facilitate changes or improvements in areas identified as subpar.

PEST analysis can be used in conjunction with other forms of strategic business analysis, such as the SWOT (strengths, weaknesses, opportunities, and threats) model, for an even more comprehensive result. Conducting a comparison between these completed analyses can provide a very solid basis for informed decision-making.

What Is PEST vs. PESTLE Analysis?

PEST analysis stands for "political, economic, social, and technological" whereas PESTLE stands for the same but adds "legal" and "environmental" factors to the analysis. These areas are considered when assessing the impact of external factors on a company's profitability.

How Do You Do a PEST Analysis?

To do a PEST analysis, you must consider the different factors under each category (political, economic, social, and technological), and how these factors affect your business. For the political component, you would assess laws, regulations, government policies, and tariffs, for example. For the economic component, some of the topics you would assess would include access to financing, cost of living, interest rates, inflation, and labor costs. For the social component, you would consider consumer trends and behaviors, education, division of wealth, population growth rates, and health. For the technological component, you would assess areas such as artificial intelligence growth, innovation, research and development, social networking, and cybersecurity.

How Often Should a PEST Analysis Be Done?

A PEST analysis can be done as often as a business would like. It is good to perform a PEST analysis when there have been significant changes that may impact a business, such as a change in interest rates, new government policies, or the introduction of new technology. It should be done often so as not to become outdated.

By analyzing the political, economic, societal, and technological factors that impact its business, a company can plan, reorganize, and adjust to these external factors in order to become a more successful operation. A business's success is not only predicated on how well it internally manages its operations but also on how it functions in the larger world. PEST analysis helps it to succeed in that aspect.

Chartered Institute of Personnel and Development. “ PESTLE Analysis .”

Rastogi, Nitank and Trivedi, M.K. “ PESTLE Technique—A Tool to Identify External Risks in Construction Projects .” International Research Journal of Engineering and Technology , vol. 3, no 1, 2016, pp. 385-386.

PESTLE Analysis. “ What Is PESTLE Analysis? An Important Business Analysis Tool .”

PESTLE Analysis. “ What Is a SWOT Analysis? 2 Examples of What It’s Used For .”

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What Is a PEST Analysis?

A PEST analysis can help you understand your business environment and potential threats.

Table of Contents

In business, there’s only so much you can control. You can decide which products and services you offer, how much you charge, who supplies you and whom you employ. However, many factors are entirely out of your control, and without detailed knowledge of those variables, it’s a lot harder to run a successful business.

Many companies use a political, economic, social and technological (PEST) analysis to assess their business environment and understand external threats and opportunities.

What is a PEST analysis?

A PEST analysis is an assessment of the political, economic, social and technological factors that could affect a business now and in the future. The purpose of a PEST analysis is to give a company’s management team a better understanding of the market they’re operating in now and how they can prepare for potential shifts, such as regulatory changes.

Elements of a PEST analysis

A PEST analysis covers political, economic, social and technological factors. Here’s more about each:

P (political)

The “P” in the analysis refers to the political factors that help or hinder a business. 

“We see this currently in the U.S., particularly in the area of international business,” said grant professional Donna Lubrano. “We look at tariffs, trade deals as they are developed not only by the economics or business side but what political relationships influence those decisions.”

A PEST analysis examines the following political factors:

• Employment regulations: Will it become more expensive to employ staff because of minimum-wage laws , safety-at-work legislation, pension contributions, healthcare contributions and more? Are tax authorities classifying more contractors as employees ?
• Environment: Can profit levels be maintained if authorities demand a less-polluting production process or if they levy a charge on companies in your sector for post-use cleanup of your products?
• Government policy: Are laws that a government passes conducive to businesses and, specifically, to your business?
• Intellectual property protection: Do a country’s laws and court systems recognize the rights of intellectual property holders? In addition, how hard is it to seek redress in instances of copyright infringement and intellectual property theft ?
• Property rights: Do you have sufficient rights to protect and exploit resources and your assets?
• Stability: Unstable political environments, particularly in countries with regular (and often forced) changes of government, make planning difficult. In more stable countries, will a particular party coming to power materially affect your business and its profitability?
• Tariffs: If you expand your business internationally by importing materials for production or exporting finished products to customers, how will tariffs affect your business’s production costs and pricing competitiveness?
• Taxation: How does the current government’s tax policy affect your small business taxes ? For example, does it impact your business’s cash flow , allowable tax deductions and profit margins ?
• Trade restrictions: Are there sanctions (or likely sanctions) against doing business with a country you’re targeting?

E (economic)

The “E” in a PEST analysis refers to outside economic issues that can play a role in a company’s success. Look at interest rates, exchange inflation, unemployment, gross domestic product , credit availability, and the rise and fall of the middle class. 

A PEST analysis examines the following economic factors:

• Access to credit: For higher-ticket products and services, can consumers or business customers easily access competitively priced credit to purchase from your company?
• Business investment levels: Do companies in your target market regularly replace their machinery and equipment, or do they try to make these assets last as long as possible?
• Cost of living: How high is the cost of living where you do business? Higher prices affect business competitiveness because they increase housing costs and require staff to be paid more to mitigate those costs.
• Economic growth or decline: What is the current state of the economy? If an economy is improving, consumers and businesses will likely have more cash to purchase products or services. Economic growth triggers higher investment levels by businesses in general.
• Exchange rates and interest rates: What are the economic considerations for other countries that affect your business? Countries with more robust economies suffer fewer currency-value fluctuations; this is important if you import or export products. In addition, these countries are more likely to have higher interest rates that dampen local inflation, although this has not always been the case since the Great Recession of 2008-2009.
• Tariffs and restrictions: How do tariffs and international restrictions affect your business? Globalized countries where tariffs and restrictions have largely been removed enjoy faster economic growth and improved socioeconomic conditions for customers and staff.
• Inflation: What is the current level of inflation? Higher levels of inflation erode the value of money faster. In some cases, businesses may not be keen to pass on higher costs to customers, so profits fall.
• Labor costs and workforce skill levels: What is the state of the labor market? A shortage of workers with in-demand career skills will lead to rising labor costs that will hurt profitability. Sometimes, a shortage may be severe enough to require companies to spend more on employee training .
• Market conditions: How fast is the market growing? How big is the total market? How many competitors are in this market, and how does this affect pricing and costs?
• Spending habits: Are the consumers or businesses you target spending more money on your products and services? Are they spending a different way — for example, moving from in-person to online spending?
• Tax levels: What are the tax rates in the areas where you’d like to do business? If given a choice between two states or countries where almost every other PEST consideration is equal, a company may be more likely to target lower-tax countries first for investment.

The “S” in a PEST analysis relates to the social environment of a given industry’s market — how consumer needs are shaped and what brings consumers to the market for a purchase. 

“We look at what changes in culture and society are taking place,” Lubrano said. “The drive to eat healthier, the drive to care for the environment, baby boomers staying in the workforce longer, adults having fewer children later in life. All of these impact how consumers buy houses, cars, etc.”

A PEST analysis examines these social factors:

• Productivity: How productive is your workforce? The more productive a workforce is, the more competitively your business can price products or services or increase profit margins.
• Consumer trends/tastes/fashions: What are the latest consumer trends, and should your business take advantage of them? In the process of turning ideas into products , there is often a substantial time lapse between inception, creation and launch. Therefore, tracking trends, tastes and fashions is crucial to ensuring any new product’s success.
• Corporate responsibility and values: What are your company’s and employees’ values? It’s increasingly important to Gen Z and millennials that their brands of choice support their values. Should you launch a corporate social responsibility program and implement diversity, equity and inclusion training ?
• Division of wealth: Is there a large wealth gap? According to an often-cited 2015 study in the journal Human Relations , economic inequality hurts organizational performance. It also affects growth in consumption rates during periods of economic decline.
• Education: What are the education levels of your staff and candidate pool? Educational quality varies among states and countries. Lower education levels require a more significant investment in staff training and may be matched by lower levels of pay.
• Employment patterns and job market trends: What are the job market and typical work arrangement like in your area? Many states and countries have shifted toward part-time work and self-employment, making it harder to recruit and hire employees . In addition, the type of staff you wish to recruit may be in particular demand, leading to higher employment costs.
• Generational attitude shifts: Does your company employ people of different generations? Workers’ expectations of employers may differ among generations, necessitating a change in how team members are rewarded, targeted and remunerated.
• Population health: Will you invest in your staff’s mental and physical well-being to reduce absenteeism and improve productivity ?
• Population demographics: Does a state or market contain your ideal potential employees and customers?
• Population growth rate: What is the population growth rate in your area? States or countries whose populations are growing primarily through immigration may experience slower pay-rate growth due to increased competition.
• Social mobility: How easy is it for workers to move up the socioeconomic ladder? States or countries with larger middle classes that are easier to enter often have higher economic growth rates and lower income inequality rates.
• Unionization: Is unionization common in your industry? How might this affect the expectations of your workforce? Many employers believe that more highly unionized workforces cost more and are less flexible, although this is disputed.

T (technological)

Technology plays a massive role in business and can have positive and negative effects. Some organizations may have challenges adjusting to tech trends, including new products and services, so it’s essential to assess existing and imminent technology from all angles.

A PEST analysis examines these technological factors:

• Artificial intelligence (AI): How will the growth of AI affect your business? AI is transforming businesses with new ways to optimize efficiency and productivity. What are the potential applications for your sector and business?
• Automation and robotics: How will workplace automation technologies affect your industry and business? Many sectors now automate as many processes as possible to use raw materials more efficiently, offer better service to clients, and manufacture more products at a cheaper cost per unit.
• Cybersecurity and data protection: Does your business have solid cybersecurity and data protection measures in place? Cyberattacks continue to affect businesses, so companies should collect only the data they need for operation and protect that data with robust cybersecurity practices .
• Disruptive technologies: What new technologies might open new markets for your company? Which of these should you invest in to grow your business?
• Innovation: Given the accelerated rate of technological innovation affecting many sectors, should you invest in innovation now to stay ahead of the curve, or react to competitors’ innovations?
• Remote work: Do existing technology and infrastructure allow staff to work remotely? Are you accessing appropriate remote work tools to maximize productivity?
• Research and development (R&D): Should you invest in R&D in jurisdictions with significant R&D tax credits and breaks?
• Social networking: Should your company invest in social media for business to promote its products and services and hire staff via social platforms? Should you invest in apps such as Slack and Asana to enable smoother communication among employees in different locations?
• Tech hubs: Should your company (or part of the company) relocate to tech hubs where technological innovation is more likely because of the availability of staff, investors, suppliers, educational establishments and service providers?

How to conduct a PEST analysis

Now that you know what a PEST analysis is, it’s time to gather the data. Follow these steps to conduct a PEST analysis:

1. Identify the political factors.

Conduct internal research to identify what types of laws or policies affect your company. These factors may include the following:

• Material or product sourcing (e.g., import quotas, tariffs, price supports and subsidies, preferences)
• Human resources (e.g., visas, Equal Employment Opportunity Commission requirements, vaccine requirements)
• Manufacturing/operations (e.g., Occupational Safety and Health Administration requirements)
• Accounting and finance (e.g., IRS requirements; tax hikes, breaks and deductions; Securities and Exchange Commission reporting requirements)
• Marketing and customer demand (e.g., online business law requirements, CAN-SPAM Act)

Consult an attorney or the people in charge of HR compliance , safety, reporting, finance and accounting. Each should be familiar with current and proposed laws.

2. Identify the economic factors.

Determine which economic factors affect your business.

• If you sell consumer goods and services, look at the consumer price index, inflation, employment, consumer confidence, disposable income and wages.
• If you sell high-ticket items that require financing, look at interest rates.
• If you sell business-to-business (B2B) services, such as marketing or consulting, look at unemployment and other recession measures.
• If you sell or buy products as components, consider supply chain issues and tariffs.
• If you employ relatively low-wage workers, examine salaries and employment to determine whether you need to raise wages to attract talent.

3. Identify the social factors.

If you have conducted market research on customer or target market perceptions and demographics, this step is at least partially done. It’s also a good idea to read industry publications, which frequently highlight social factors that affect the industry as a whole. 

Talk to your customer service and sales staff to get feedback from customers on why they buy,  return or cancel your offerings. If you have a local business, conduct a market analysis periodically to understand your potential customers.

4. Identify the technological factors.

Although identifying technological factors is particularly important in tech industries, these considerations affect every industry in some way. 

Read industry publications and conduct a competitive analysis to learn about new technologies and innovative ways to deliver products and services in your field. Look for the following updates:

• New programming languages and methods that will make your product or service faster, more accurate or more detailed
• New apps that deliver your products or services in different ways
• New technology or processes that you can use to make your products stronger, smarter, cheaper, more convenient or more readily available

Benefits of a PEST analysis

A PEST analysis focuses exclusively on external factors, such as current and future regulations, taxes, political issues, environmental legislation and employment laws. Here’s how it can help your business. 

• A PEST analysis improves your understanding of your company. No company is an island; each business is intricately connected to its customers and society. By understanding the factors that can boost or reduce your success, you can get a sense of how your business can make a difference in other people’s lives.
• A PEST analysis informs long-term strategic planning. Conducting a PEST analysis every year helps you anticipate changes and plan for the future. You have the opportunity to prepare for shifts in the market and society in general. This will save you money, prevent lost revenue and position you well against competitors.
• A PEST analysis alerts you to potential threats and dangers. When you are aware of potential threats, you can address or prevent them. Be proactive about implementing policies to gain a competitive edge, devote resources to influencing laws that may hurt your business, or make strategic alliances that give you a stronger market position.
• A PEST analysis provides insight into valuable business opportunities. Be the first in your field to take advantage of beneficial government policies or market opportunities. By keeping your finger on the pulse of the market, you can be in the right place with the right message. 

A well-executed PEST analysis can help your company successfully navigate changes in the world around it and signal new opportunities to expand into different markets and territories. 

PEST analysis disadvantages and limitations

Although there are many potential benefits of a PEST analysis, it can also have limitations. Consider the following drawbacks:

• Ever-changing environments: Because these environments are so dynamic, your analysis could be outdated within days or even hours.
• Guesswork: You must make assumptions about specific factors, so there’s always a chance of miscalculation.
• Data overload: Because a PEST analysis involves such large data sets, it takes careful analysis to parse the data and decide how to use it to your advantage.
• Risk of inaccuracy: Most of the time, you’ll get your information from outside sources, so you can’t be sure it’s 100 percent accurate.

What is a PESTLE analysis?

A PESTLE analysis is similar to a PEST analysis, but it includes two additional factors: legal and environmental. 

• Legal: When examining legal factors, a company should evaluate how legal changes and interpretations could affect it, directly or indirectly, according to Daniel Feiman, managing director at consulting and training firm Build It Backwards. Feiman recommended examining law changes, global law conflicts and Supreme Court decisions in this portion of the analysis.
• Environmental: For the environmental portion of the analysis, Feiman recommended examining how environmental regulations, such as laws surrounding endangered species, could affect the business. 

Feiman also suggested measuring each PESTLE factor against the following considerations:

• Potential impact: Low, medium or high
• Time frame: Immediate, short-term or long-term
• Type: Positive or negative
• Direction of impact: Increasing or decreasing
• Relative importance: High, medium or low

Other types of business analyses

For a PEST analysis to be truly valuable, it should be used in conjunction with the following analyses:

• SWOT (strengths, weaknesses, opportunities and threats): A SWOT analysis allows you to identify your company’s strengths, weaknesses, opportunities and threats. SWOT analyses are best suited for making major business decisions or determining the associated risks.
• MOST (mission, objectives, strategies and tactics): A MOST analysis helps a business align with its missions and objectives by analyzing its internal strategies and tactics. This analysis is especially helpful for making organizational strategy decisions.
• SCRS (strategy, current state, requirements and solution): An SCRS is a solution-based analysis that helps you identify the correct course of action to address a business challenge or issue. By analyzing your business’s current state and requirements, you can develop an effective strategy that will solve the problems your business faces. 

Using a PEST analysis for business decision-making

Using a PEST analysis to assess your business’s environment, including any external threats and opportunities, is an excellent way to inform decisions and strategies. It is especially effective for larger businesses that want to understand their place in their industry.

Sammi Caramela contributed to this article. Source interviews were conducted for a previous version of this article. 

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Article • 9 min read

PEST Analysis

Identifying "big picture" opportunities and threats.

By the Mind Tools Content Team

(Also known as PESTLE, PESTEL, PESTLIED, STEEPLE, SLEPT and LONGPESTLE)

Changes in your business environment can create great opportunities for your organization – and cause significant threats.

Opportunities might come from new technologies that help you reach new customers, from new funding streams that allow you to invest in better equipment, and from changes to government policy that opens up new markets.

Threats might include deregulation that exposes you to intensified competition, a shrinking market, or increases to interest rates, which can cause problems if your company is burdened by debt.

PEST Analysis is a simple and widely used tool that helps you to analyze the Political, Economic, Socio-Cultural, and Technological changes in your business environment. So you can gain a better understanding of the "big picture" forces of change that you're exposed to, and, from this, take advantage of the opportunities that they present.

In this article and in the video, below, we'll look at how you can use PEST Analysis to understand and adapt to your current and future business environment.

What Is PEST Analysis?

Harvard professor Francis Aguilar is thought to be the creator of PEST Analysis. He included a scanning tool called ETPS in his 1967 book, "Scanning the Business Environment," which was later amended to PEST. [1]

PEST Analysis is useful for four main reasons:

• It enables you to spot business or personal opportunities, and gives you advanced warning of any significant threats.
• It reveals the direction of change within your business environment, so you can adapt what you're doing to work with the change, rather than against it.
• You can use to analyze risks in your environment as well, so you can avoid starting projects that are likely to fail.
• It gives you an objective view of new and different markets, so you can base business decisions on facts rather than unconscious assumptions when you enter a new country, region, or market.

PEST Analysis is often linked with SWOT Analysis , however, the two tools have different areas of focus.

PEST Analysis looks at "big picture" factors that might influence a decision, a market, or a potential new business. SWOT Analysis explores these factors at a business, product-line or product level.

These tools complement one another and are often used in combination.

How to Use PEST Analysis

Work through the following four steps to analyze your business environment using PEST.

You may like to use our worksheet to guide you through these steps.

Step 1: Brainstorm Factors

First, brainstorm the changes happening in your business environment that will likely impact your organization, focusing on the four key areas of PEST – politics, the economy, socio-cultural changes, and technology.

We've included some common questions to help you do this, but you can tailor these to suit your specific business needs.

Political Factors to Consider

• When is the country's next local, state, or national election? How could this change government or regional policy?
• Who are the most likely contenders for power? What are their views on business policy, and on other policies that affect your organization?
• Depending on the country, how well developed are property rights and the rule of law, and how widespread are corruption and organized crime? How are these situations likely to change, and how is this likely to affect you?
• Could any pending legislation or taxation changes affect your business, either positively or negatively?
• How will business regulation, along with any planned changes to it, affect your business? And is there a trend towards regulation or deregulation?
• How does government approach corporate policy, corporate social responsibility, environmental issues, and customer protection legislation? What impact does this have, and is it likely to change?
• What is the likely timescale of proposed legislative changes?
• Are there any other political factors that are likely to change?

Economic Factors to Consider

• How stable is the current economy? Is it growing, stagnating, or declining?
• Are key exchange rates stable, or do they tend to vary significantly?
• Are customers' levels of disposable income rising or falling? How is this likely to change in the next few years?
• What is the unemployment rate? Will it be easy to build a skilled workforce? Or will it be expensive to hire skilled labor?
• Do consumers and businesses have easy access to credit? If not, how will this affect your organization?
• How is globalization affecting the economic environment?
• Are there any other economic factors that you should consider?

Use Porter's Diamond to align your strategy with your country's business conditions.

Socio-Cultural Factors to Consider

• What is the population's growth rate and age profile? How is this likely to change?
• Are generational shifts in attitude likely to affect what you're doing?
• What are your society's levels of health, education, and social mobility? How are these changing, and what impact does this have?
• What employment patterns, job market trends, and attitudes toward work can you observe? Are these different for different age groups?
• What social attitudes and social taboos could affect your business? Have there been recent socio-cultural changes that might affect this?
• How do religious beliefs and lifestyle choices affect the population?
• Are any other socio-cultural factors likely to drive change for your business?

Values take a central role in any society. Use the Competing Values Framework to identify your organization's values, and Hofstede's Cultural Dimensions to explore the values of your customers.

Technological Factors to Consider

• Are there any new technologies that you could be using?
• Are there any new technologies on the horizon that could radically affect your work or your industry?
• Do any of your competitors have access to new technologies that could redefine their products?
• In which areas do governments and educational institutions focus their research? Is there anything you can do to take advantage of this?
• How have infrastructure changes affected work patterns (for example, levels of remote working)?
• Are there existing technological hubs that you could work with or learn from?
• Are there any other technological factors that you should consider?

There are variations of PEST Analysis that bring other factors into consideration. These include:

• PESTLE/PESTEL: Political, Economic, Socio-Cultural, Technological, Legal, Environmental.
• PESTLIED: Political, Economic, Socio-Cultural, Technological, Legal, International, Environmental, Demographic.
• STEEPLE: Social/Demographic, Technological, Economic, Environmental, Political, Legal, Ethical.
• SLEPT: Socio-Cultural, Legal, Economic, Political, Technological.
• LONGPESTLE: Local, National, and Global versions of PESTLE. (These are best used for understanding change in multinational organizations.)

Choose the version that best suits your situation.

Step 2: Brainstorm Opportunities

Once you've identified the changes that are taking place in your business environment for each area of PEST, it's time to look at each one in detail, and brainstorm the opportunities that they could open up for you. For example, could it help you develop new products, open up new markets, or help you make processes more efficient?

Step 3: Brainstorm Threats

It's also important to clarify and factors that might undermine your business, now and in the future. If you understand this early enough, you may be able to avoid these problems, or minimize their impact.

For example, if a core part of your market is in demographic decline, could you target other areas of the market? Or if technology is threatening a key product, can you adapt to it?

Risk Analysis can help you to assess these threats and devise strategies to manage them.

Step 4: Take Action

Where you have identified significant opportunities, build the actions you'll take to exploit them into your Business Plan . And if you've identified any significant risks, take appropriate action to manage or eliminate them.

PEST Analysis is a great tool you can use to brainstorm threats and opportunities that might be impacting you, as a result of your wider business environment.

PEST stands for:

• P olitical. How government policy and legislation are impacting your business.
• E conomic. How economic factors like growth, inflation and interest rates are affecting your business.
• S ocio-cultural. How trends and lifestyle changes might impact your business.
• T echnological. How new technologies, automation, and the pace of technological change are impacting your business.

You can use these headings to brainstorm the "big picture" characteristics of a business environment (this could be a country, a region, or a new or existing market), and, from this, draw conclusions about the significant forces of change operating within it.

This provides a context for more detailed planning, within which you will be able to minimize risks and take full advantage of the opportunities that present themselves.

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How to do a PEST analysis

Lucid Content

Reading time: about 7 min

As a business leader, you understand the importance of staying ahead of the curve, but changes outside your control are constantly influencing your business. If you don’t take the time to identify and understand these external factors, you could be leaving money on the table—or worse, endangering the business itself.

The PEST analysis helps entrepreneurs discover what factors could impact their business and develop strategies to handle those changes. In this article, you will learn the of a PEST analysis and how to complete one.

What is a PEST analysis?

Originally developed in 1967 by Harvard professor Francis Aguilar, PEST analysis is a strategic planning tool that helps organizations identify and evaluate threats and opportunities for the business.

PEST is an acronym describing four primary external factors that influence the business environment: political, economic, socio-cultural, and technological.

Goals of a PEST analysis

The main purpose of PEST analysis is to understand what external forces may affect your organization and how those factors could create opportunities or threats to your business.

PEST analysis helps you:

• Understand current external influences on the business so you can work on facts rather than assumptions.
• Identify what factors could change in the future.
• Mitigate risks and take advantage of opportunities to remain competitive.
• Develop a better long-term strategy.

PEST is particularly useful for understanding the overall market environment. The more threats or risk factors in the market, the more difficult it is to do business. By analyzing the market forces at play, the more strategic you can be in your planning and decision-making.

Additionally, PEST analysis helps organizations strategically plan projects and initiatives so that you only focus on projects that have the greatest chance of success. It also gives you the tools to forecast changes so you can grow your organization with those changes instead of working against them.

PEST vs. SWOT analysis

PEST and SWOT analysis are often used together to better understand the business environment. However, the two frameworks are distinct and apply to different levels of business analysis.

PEST analysis focuses on the big picture and impacts on the overall business, market, and important decisions. PEST is best used for market research and broader analysis of the business environment.

On the other hand, SWOT analysis hones in more narrowly on the organization itself to identify its strengths, weaknesses, opportunities, and threats. A SWOT analysis is often conducted at the beginning of a new project or to evaluate a product line.

Combining these macro- and micro-level analyses of your business will help you understand a complete picture of your market and your business’s unique opportunities so you can mitigate risks and effectively plan for the future.

When to do a PEST analysis

A PEST analysis is best used when you need a big-picture understanding of your business. Some of the best times to do a PEST analysis include:

• When you’re starting a new business
• When you uncover a major problem
• When/if your business is pivoting
• When you recognize impending changes in one area (e.g., politics) and want to re-evaluate the market

Keep in mind that PEST analyses are macro-level evaluations. 

Conducting a PEST analysis is fairly straightforward, but it can be time-consuming. Use the following steps to help you conduct your next PEST analysis—just be sure to give yourself plenty of time to do a thorough evaluation.

1. Consider PEST factors that could impact your business

The first step is to research and gather as much information about your organization’s external influences as possible. Enlist the help of other leaders or managers in the business to ensure you have a comprehensive data set.

As you start brainstorming and gathering data, consider the following list of PEST examples to guide your research:

P: Political factors

Political factors look at how legal and governmental regulations, as well as the political climate, might affect your organization’s freedom to operate and its ultimate profitability.

These factors might include:

• Upcoming local, state, or national elections
• Main political candidates and their views on different policies
• Government regulation of industry or competition
• Trade policies (e.g., tariffs, current or prospective trade deals, etc.)
• Level of corruption or organized crime in your region or country
• Import restrictions
• E-commerce policies
• Consumer and employee protections

E: Economic factors

The economy has a significant impact on any business. Consider the following economic factors that could influence your business operations:

• Current economic stability
• Projected growth and inflation rates
• Interest rates
• Fiscal policies
• Consumer habits and financial stability
• Unemployment rate and competition for jobs
• Access to credit (personal and business)

S: Socio-cultural factors

Socio-cultural factors consider the makeup of the population and your target demographics to understand how well your business can compete in the market. These factors might include age distribution, cultural attitudes, and workplace or lifestyle trends.

As you analyze the market, consider how the following factors could impact your organization:

• Population growth and demographics
• Generational shifts
• Consumer habits and values (e.g., focus on product quality or eco-friendliness)
• Family size and structure
• Consumer lifestyles
• Immigration rates
• Attitudes toward work

T: Technological factors

This step considers technology’s specific role and development in an organization and the industry, as well as broader technological trends and uses that affect society as a whole.

For example, one way technological changes have affected the workforce is by increasing access and availability of remote working opportunities. These changes have far-reaching consequences for the future of work and will impact how organizations structure their businesses and employees.

Other technological factors to consider include:  

• The organization’s access to new technology
• The competition’s access to technology
• Rate of technological change
• Evolution of infrastructure
• Government or institutional research

2. Identify opportunities

Once you’ve researched the various ways your organization is influenced and affected by external conditions, start identifying opportunities these changes could provide.

For instance, is there a technological development of which you could take advantage to increase efficiency? Or are there shifts in consumer demographics that could open new markets for your products?

Seek out as many opportunities as possible so you can develop the best strategic response for your business.

3. Identify threats

Unfortunately, change also comes with risks. Whether an economic downturn threatens your bottom line or a competitor’s access to new technology gives them a competitive edge, you need to identify potential threats to your organization so you can mitigate the risks and adapt your strategy accordingly.

The sooner you recognize threats, the more likely you are to avoid them or reduce their impact.

4. Act on your findings

With all your data collected and your opportunities and threats outlined, it’s time to take action. Incorporate these findings into your business plan to take advantage of opportunities and manage threats as soon as possible.

Use Lucidchart for your next PEST analysis

When it comes to PEST analysis, there are a lot of things to consider. Make the process easier with Lucidchart.

Lucidchart is an intelligent diagramming solution that helps businesses visualize their processes, people, and systems. Use Lucidchart’s ready-made business analysis and strategy templates to get started on your analysis today. Because Lucidchart is a cloud-based platform, you can work from multiple devices and easily share your documents with other contributors.

When you’re finished, start a new diagram in Lucidchart to map out your strategy so you can begin taking action on your findings ASAP.

Browse Lucidchart's business analysis and strategy templates. Go now

Browse Lucidchart’s business analysis and strategy templates.

About Lucidchart

Lucidchart, a cloud-based intelligent diagramming application, is a core component of Lucid Software's Visual Collaboration Suite. This intuitive, cloud-based solution empowers teams to collaborate in real-time to build flowcharts, mockups, UML diagrams, customer journey maps, and more. Lucidchart propels teams forward to build the future faster. Lucid is proud to serve top businesses around the world, including customers such as Google, GE, and NBC Universal, and 99% of the Fortune 500. Lucid partners with industry leaders, including Google, Atlassian, and Microsoft. Since its founding, Lucid has received numerous awards for its products, business, and workplace culture. For more information, visit lucidchart.com.

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PEST Analysis: Definition, Examples, and Templates

10 minutes read

Introduction

PEST Analysis is a strategic tool used by businesses and marketers to evaluate the macro-environmental factors that can impact their operations, growth, and strategy. It stands for Political, Economic, Social, and Technological factors, which are the primary elements considered in this analysis. By understanding the PEST factors, organizations can better position themselves in the market, anticipate changes, and develop strategies to mitigate risks or capitalize on opportunities. In this article, we will define PEST Analysis , provide examples of its application, and offer templates to help you conduct your own analysis.

What is PEST Analysis

PEST analysis is a strategic management tool used to analyze and evaluate the external factors affecting an organization or a specific project. The acronym "PEST" stands for Political, Economic, Social, and Technological factors. These factors are assessed to understand the potential opportunities and threats they present to the organization's operations or objectives. PEST analysis helps businesses and decision-makers anticipate changes in their external environment and adapt their strategies accordingly.

What is PEST Analysis used for

PEST Analysis is a macro-environmental analysis that helps businesses understand the external factors that can influence their business environment. It is a component of the broader PESTEL or PESTLE analysis, which also includes Environmental and Legal factors. The PEST framework is particularly useful for:

Strategic Planning: PEST Analysis aids in identifying long-term opportunities and threats that could shape the future direction of a business. By analyzing Political, Economic, Social, and Technological factors, businesses can anticipate changes in the business environment and strategically plan their growth trajectory.

Market Research: Understanding the broader context in which a market operates is crucial for effective market research. PEST Analysis provides this context by offering insights into the external factors that can impact market trends, consumer behavior, and overall market potential.

Risk Management: In terms of risk management, PEST Analysis helps businesses assess potential risks associated with external factors. For instance, changes in government policies (Political), economic downturns (Economic), shifts in consumer attitudes (Social), or rapid technological advancements (Technological) could pose risks. By anticipating these risks, businesses can develop contingency plans to mitigate their impact.

Competitive Analysis: Lastly, PEST Analysis is useful for evaluating how competitors might be affected by the same external factors. This understanding can help businesses identify competitive advantages or vulnerabilities and adjust their strategies accordingly.

Overall, PEST Analysis provides valuable insights that enable businesses to navigate their macro-environment more effectively for strategic planning, market research, risk management, and competitive analysis.

What are the Components of PEST Analysis?

PEST Analysis serves as a powerful tool for businesses to understand the macro-environmental factors that can influence their operations. Each component of PEST Analysis represents a different aspect of the macro-environment. Let's delve deep into its role in strategic planning, market research, risk management, and competitive analysis.

Risk Management: I n terms of risk management, PEST Analysis helps businesses assess potential risks associated with external factors. For instance, changes in government policies (Political), economic downturns (Economic), shifts in consumer attitudes (Social), or rapid technological advancements (Technological) could pose risks. By anticipating these risks, businesses can develop contingency plans to mitigate their impact.

Whether it's for strategic planning, market research, risk management, or competitive analysis, PEST Analysis provides valuable insights that enable businesses to navigate their macro-environment more effectively.

PEST Analysis Examples for Application

PEST Analysis can provide valuable insights across various industries. Let's look at some examples of how PEST Analysis can be applied in different industries:

PEST Analysis for the Retail Industry

In the retail sector, political factors such as import tariffs and trade policies could significantly impact the cost of goods and ultimately the pricing strategy. Economic factors like consumer spending habits, disposable income levels, and economic stability would directly influence demand patterns. Social trends, including the increasing preference for online shopping or sustainable products, shape consumer behavior. Technological advancements like AI-powered recommendation systems or secure payment technologies also play a crucial role in shaping the retail landscape.

PEST Analysis for the Automotive Industry

For automakers, political factors such as emission regulations or safety standards can dictate design and production decisions. Economic factors like fuel prices or economic downturns can influence consumer buying power and preferences. The shift in social attitudes towards environmentally friendly vehicles has seen a surge in demand for electric vehicles. Technological advancements like autonomous driving technology, electric drivetrains, and connected car technology are reshaping the industry.

PEST Analysis for the Healthcare Industry

In healthcare, political factors like healthcare reforms or policy changes can have a profound impact on how healthcare services are delivered. Economic factors such as public health funding or insurance coverage determine accessibility to healthcare services. Social factors like an aging population or lifestyle trends influence healthcare demand patterns. Technological breakthroughs in areas like telemedicine, AI diagnostics, genomics, and personalized medicine are revolutionizing patient care.

These examples illustrate how PEST Analysis can help businesses in different industries understand their macro-environment better and make strategic decisions accordingly.

How to Conduct a PEST Analysis

Here's a step-by-step guide on how to conduct a PEST analysis.

1. Start by identifying the four key factors that make up a PEST analysis: Political, Economic, Social, and Technological.

2. Political Factors: Analyze the political environment and how it may impact your business. This includes factors such as government stability, regulations, trade policies, and taxation. Look for any political changes or events that may affect your industry or market.

3. Economic Factors: Evaluate the economic factors that can influence your business. Consider factors such as economic growth, inflation rates, interest rates, and exchange rates. Look for any economic trends or patterns that may impact your industry or market.

4. Social Factors: Examine the social factors that can impact your business. This includes factors such as demographic trends, cultural norms, consumer attitudes, and lifestyle changes. Look for any social shifts or movements that may affect your industry or market.

5. Technological Factors: Assess the technological factors that can affect your business. Consider factors such as technological advancements, innovation, automation, and digitalization. Look for any technological developments or disruptions that may impact your industry or market.

6. Gather relevant data and information for each factor. This can be done through market research, industry reports, surveys, and interviews. Ensure that the information collected is accurate and up-to-date.

7. Analyze the data and identify the key opportunities and threats that arise from each factor. This will help you understand the external factors that can impact your business positively or negatively.

8. Prioritize the opportunities and threats based on their potential impact and likelihood of occurrence. This will allow you to focus on the most significant factors and develop strategies to mitigate risks or capitalize on opportunities.

9. Develop an action plan based on the findings of the PEST analysis. This plan should outline specific steps and initiatives to address the identified opportunities and threats. Assign responsibilities and set deadlines to ensure effective implementation.

10. Regularly review and update the PEST analysis to reflect any changes in the external environment. Keep track of new political, economic, social, and technological developments that may impact your business.

By conducting a PEST analysis, you can gain a better understanding of the external factors that can influence your business. This analysis will help you make informed decisions, develop effective strategies, and stay ahead of the competition in a rapidly changing business environment.

Boardmix: Online Whiteboard for PEST analysis

Boardmix Online Whiteboard is a tool that can help users create PEST analysis charts and diagrams. This online whiteboard platform allows users to collaborate and brainstorm ideas in real time. With the PEST analysis in Boardmix, users can easily identify and analyze the political, economic, social, and technological factors that may impact their business or industry.

Steps of Creating PEST analysis in Boardmix

Creating a PEST analysis in Boardmix is a straightforward process. Here are the steps to follow:

1. Sign in or create an account: Visit the Boardmix website and sign in with your existing account or create a new one if you don't have an account yet.

2. Create a new whiteboard: Once you're signed in, click on the "New board" button to start creating a new whiteboard for your PEST analysis.

3. Add PEST analysis template: In the whiteboard, click on the "Templates" option in the toolbar and search for "PEST analysis." Select the template that suits your needs and click on it to add it to your whiteboard.

4. Customize the template:  Customize the PEST analysis template by adding your own content and data. You can edit the text, add or remove sections, and rearrange elements according to your analysis requirements.

5. Collaborate and gather input:  If you're working with a team or stakeholders, use the collaboration features of Boardmix to gather input and insights from others. You can invite team members to join your whiteboard and collaborate in real time.

6. Add notes, comments, and images: Enhance your analysis by adding notes, comments, and images to provide further context and explanations for your findings. This will make your analysis more comprehensive and informative.

7. Export and share: Once your PEST analysis is complete, you can export it in various formats such as PDF or PNG. This allows you to easily share your analysis with colleagues, clients, or other stakeholders.

That's it! You have successfully created a PEST analysis in Boardmix. Enjoy exploring and analyzing the external factors that may impact your business or industry.

Why Use Boardmix to Make PEST Analysis?

When it comes to using Boardmix for PEST analysis, several key features make it a valuable tool.

1. Firstly, Boardmix offers a user-friendly interface that makes it easy for users to navigate and create their PEST analysis charts. The platform is designed to be intuitive and user-friendly, ensuring that even those without technical expertise can easily utilize the tool.

2. Secondly, Boardmix provides a wide range of customization options. Users have the ability to choose from various templates and layouts, allowing them to tailor their analysis to their specific needs. Whether you're analyzing the political, economic, social, or technological factors, Boardmix has the flexibility to accommodate your requirements.

3. Furthermore, Boardmix supports real-time collaboration. This means that multiple users can work on the same analysis simultaneously, enabling teams to brainstorm ideas, share insights, and gather input from different perspectives. This collaborative feature enhances the overall effectiveness of the PEST analysis and ensures that all relevant stakeholders have a voice in the process.

4. Additionally, Boardmix allows users to add notes, comments, and images to their analysis. This functionality enables users to provide further context and explanations for their findings, enhancing the clarity and depth of the analysis. The ability to include images also allows for visual representations of data or examples, making the analysis more engaging and informative.

5. Lastly, Boardmix offers a seamless exporting and sharing process. Once the PEST analysis is complete, users can easily export their charts in various formats such as PDF or PNG. This enables them to share their analysis with colleagues, clients, or other stakeholders.

Overall, the features offered by Boardmix make it an ideal choice for conducting a PEST analysis. Its user-friendly interface, customization options, real-time collaboration capabilities, note-taking functionality, and exporting capabilities ensure a comprehensive and efficient analysis process.

PEST Analysis Templates

To help you get started with your own PEST Analysis, here are simplified templates for each component:

1. Political Factors

   - Government policies and regulations

   - Political stability and risks

   - Taxation and trade policies

   - Labor laws and employment regulations

2. Economic Factors

   - Economic growth and forecasts

   - Interest rates and inflation

   - Exchange rates and currency risks

   - Consumer spending trends and disposable income

3. Social Factors

   - Demographic trends and population growth

   - Cultural and lifestyle changes

   - Education levels and workforce skills

   - Health and environmental concerns

4. Technological Factors

   - Technological trends and innovation

   - Automation and artificial intelligence

   - Product development and life cycles

   - Infrastructure and connectivity

PEST Analysis is a valuable tool for businesses looking to understand and navigate the complex macro-environmental factors that can influence their success. By conducting a thorough PEST Analysis, organizations can gain insights into potential opportunities and threats, allowing them to make informed strategic decisions. The templates provided serve as a starting point, but businesses should tailor their analysis to their specific industry and market context. Boardmix provides a user-friendly interface with various templates and customization options to create visually appealing PEST analysis charts. Users can also add notes, comments, and images to further enhance their analysis. Discover the Boardmix Online Whiteboard for PEST Analysis and conduct a thorough analysis of external environment.

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What is a PEST analysis?

Table of Contents

What is a pest analysis, and when is it helpful.

If we could see into the future, every business person would keep a crystal ball or magic mirror on their desk. Unfortunately, there is no sure way to know what tomorrow holds.

However, we can make educated guesses based on a few key cultural and economic factors and prepare our strategic business plans accordingly. One of the best ways to ensure you accurately anticipate upcoming changes is to perform a PEST analysis.

A PEST analysis is crucial to any successful business’s planning process, whether it’s a brand-new startup or an established institution. A PEST analysis allows companies to judge how they fit into a bigger picture, find new opportunities, and dodge upcoming risks.

In this article, we’ll examine two real-world examples of a PEST analysis and provide a guide for performing your own using a PEST analysis template .

A PEST analysis looks beyond the borders of your business or project to assess outside factors that may impact operations. PEST is an acronym for the four types of external factors examined during the analysis. These four factors don’t break down into cleanly separate areas of concern but often blend into each other.

The four factors are P olitical, E conomic, S ocial, and T echnological. Together, they can cover most of the ways the world will change in the near future. A few alternatives add to or change the focus, which we’ll also discuss in this article.

Political factors

Regulations, laws, and even elections can significantly impact a business positively or negatively. Assessing the political situation can help a business anticipate upcoming changes to the playing field. Some sectors of business may be significantly influenced by changes in the political landscape, but any business can be affected.

For example, tariffs or tax policy changes may be important if you export goods or import raw materials. It’s a good idea for business owners to track political conditions, particularly as changes are usually signaled before they are implemented.

Economic factors

An economic assessment considers factors like fluctuations in exchange rates or interest rates, availability of workforce skills, and economic performance. Economic factors may be closely tied to political factors but can include various considerations. Both inflation rates and agricultural productivity may play into financial analysis.

Social factors

Social factors, or sometimes socioeconomic factors, include things like labor movements, population growth rates, consumer trends, education levels of workers, and wealth disparity. Social issues or changing cultural movements can affect your business, so it’s a good idea to investigate them dispassionately when considering their impact.

Socioeconomic factors affect the cost of labor, the type of workers available to you, and your market and customers.

Technological factors

Technological factors continue to transform how business is done on many levels. These factors can range from logistical issues to new business opportunities.

In some places, you may need to be concerned about internet access or even the electrical grid. You may need to assess how you take advantage of new technologies. Your competitors may also use technology in a way that can affect you.

To help you think about how these external factors might impact you, use out this PEST analysis template to guide you.

PEST analysis benefits and drawbacks

Before investing in a PEST analysis, you should know what they’re good for and where they may fall short. While an analysis of this type is often a vital decision-making tool, it does have some drawbacks.

Classifies a wide range of issues in a basic framework

Can reveal external opportunities and risks before they affect your business

Vital for strategic planning

Provides a context for your company

Can be expensive in time and resources

May be based on invalid assumptions

Potential to miss important trends

How to do a PEST analysis

A PEST analysis is ultimately a type of in-depth research project that looks at a wide range of factors. As a result, performing a PEST analysis will require time and resources to be truly useful.

1. Prepare for research

Preparing for a PEST analysis can be as simple as clearing time on your schedule or as complicated as assembling a dedicated research team. A PEST analysis requires knowledge in several areas, such as social trend spotting and the local political climate. The analysis will therefore benefit from having a team with members well-informed in each area.

An important step is to identify the sources worth your attention, as there is no shortage of opinions on how the world is changing. Some examples include reliable media outlets, a country’s census bureau, academic research, and other highly credible sources.

Remember that this is a starting point, and you’ll expand your sources once your focus narrows.

2. Outline areas of concern

You could spend your life researching trends and new developments. However, a PEST analysis is ultimately about how those developments will impact your business.

You can begin by brainstorming topics in each PEST category to give yourself a place to start researching. However, be sure to keep the scope of your research limited to relevant factors.

Learning about international trade restrictions may not be vital for a local business but trending nearby social and economic factors might matter a lot. Some research may be performed at this point to provide background and a baseline.

Keep in mind that you may need to examine each category of factors at a different scope. Economic analysis can be less precise on smaller scales, but you may want to focus on workforce availability in a specific area.

3. Perform research

Once you’re ready, you’ll need to start researching the issues you’ve identified as relevant. Good research usually consists of these few steps:

Review the status quo - Review the current situation and the history that led to it. Background research has probably already started at this stage, but you may want to go more in-depth. If employment laws are changing, it might help to understand how they currently shape the market.

Discover evolving trends - Learn about current and developing trends in the political, economic, social, and technological spheres. It may be worth paying particular attention to the aspects that are changing, like new laws and changing tastes. For example, artificial intelligence may have permanently altered how some aspects of business are conducted.

Find supporting or conflicting information - Once you’ve started drawing some conclusions or spotting trends, testing your understanding is essential. There will almost always be conflicting opinions, but it may be helpful to focus on the consensus.

During this stage you can add all your research to an interactive board using the PEST Analysis Template , so everyone can collaborate using a single source of information.

4. Draw conclusions

Eventually, you’ll have to turn your research into a final product. Doing so will require reaching conclusions about how things are changing and what that means for your business.

You’ll probably want to focus on two areas: new opportunities for your business and threats to its bottom line. It’s crucial to prioritize findings according to when and how trends will affect your business.

Miro’s SWOT Analysis Template can help your team develop a path forward based on the PEST analysis findings.

A PEST analysis provides insight for a particular timespan, specifically when the research was being conducted, and the analysis was compiled. Events will continue to unfold, and your business's context is ever-evolving. As a result, it's important to perform this sort of analysis regularly.

Regularly performing a PEST analysis may also be a good idea because it can provide a useful baseline for analysis. You may also wish to perform an analysis in response to specific events, such as unexpected economic growth or changes in the market.

PEST analysis examples

A real-world PEST analysis can often resemble a dense research paper that delves deeply into complex topics. As a result, the analysis may be difficult for people who aren’t experts to follow. We dove into these examples of actual PEST analysis and broke them down to help you understand how they were performed and how they reached their conclusions.

Libraries in Higher Education

Higher education has changed in the last twenty years, moving toward a more consumerist model where education is providing a service and extracting revenue. The factors that drive those changes impact how libraries operate and the materials they include in their collections.

The structure of this particular example may be worth paying attention to, as it examines factors at different levels. It first identifies the specific trends that fall under each category. It then expands on how that trend may affect the industry concerned. Finally, the impact on the specific organization is examined.

Political - Higher education institutions often depend heavily on government funding. Policies have shifted, reducing funding and increasing competition for resources.

Additionally, certain modern political trends may clash with traditional library values. For example, libraries are an expression of the idea that education is a public good, while educational institutions may now see it as their primary commodity.

Economic - The Great Recession and pandemic have both impacted the economic outlook of higher education, leading to a focus on open access and simpler subscription models to access publications. Due to less government support, libraries are driven to those models to reduce costs while increasing revenues.

Social factors - Demographic changes impact the student makeup, including an upcoming drop in the college-aged population. Students' mental health is a growing concern, as are issues with gender and ethnic equity. Libraries may see their resources further strained by supporting mental health and serving diverse students.

Technological - Online learning and the ubiquity of the internet have changed learning and how people access library materials. In some ways, technology has lifted many burdens from libraries. However, they are often leaders in making educational technology accessible.

Biofuels in Europe

This example is actually a PESTLE analysis , a variation we’ll explore in more detail. Essentially, it’s adding two factors to a PEST analysis, L egal and E nvironmental. Those are both highly relevant areas of concern, as they can have a big impact on the development of biofuels .

Political and legal factors - The sources of biofuels are agricultural, so they are often heavily influenced by incentives and restrictions set by the government. A particular focus of this study was the EU renewable energy directive (RED).

Economic factors - Biofuel is an alternative to petroleum fuel, so its success is linked closely with petroleum’s economic performance. Unsurprisingly, as petroleum becomes more expensive, interest in biofuels grows. However, it's also important to consider the effects of environmental factors, including growing season and fuel demands.

Social - The first social concern that may leap to mind is the public perception of climate change and popular activism around that topic. However, there may be unexpected factors to consider. For example, biofuels compete with food supply for land use and crops.

Technological - Biofuel production technology continues to be developed, affecting business basics like production costs. At the same time, there is growing competition from other areas of technological development, like electric vehicles.

Environmental - While biofuels may reduce CO2 emissions, their production may negatively impact environmental factors like land use and biodiversity. Water use may also be a consideration.

Both these examples are truly academic research, so they don’t come with specific suggestions for businesses based on the analysis performed. However, they do describe some consequences they predict for each of their areas of focus.

PEST analysis alternatives

The PEST acronym may be the best-known example of this sort of analysis, but it’s not the only option. We discussed one example that used PESTLE, which included legal and environmental factors in the analysis. Other options include:

PESTLIED - Political, Economic, Social, Technological, Legal, International, Environmental, and Demographic

STEEPLE - Social, Technological, Economic, Environmental, Political, Legal, Ethical

SLEPT - Social, Legal, Economic, Political, Technological

LONGPESTLE - A PESTLE analysis done on a LOcal, National, and Global scale.

Each alternative offers different areas of focus. For example, SLEPT teases apart legal and political factors, as a court’s opinion may matter as much as government policy. LONGPESTLE offers several levels of scale so that you can assess both local trends in government as well as broader political stability.

Use Miro for your next PEST analysis

In many ways, a PEST analysis may seem more like an academic exercise than useful business research. However, the results of a PEST analysis can allow you to spot developing opportunities and risks before they impact your business.

The saying is that knowledge is power. When it comes to a PEST analysis and the future of your business, it might be more accurate to say that knowledge is a stepping stone to success – whatever that success means to you.

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• PEST analysis
• How to conduct a PEST analysis
• What is PEST analysis?
• Using PEST analysis to identify external factors
• Implementing and monitoring the plan
• Assigning responsibilities
• Creating an action plan
• Measuring progress and making adjustments
• Introduction to strategic planning
• Key components of a strategic plan
• Benefits of strategic planning
• What is strategic planning?
• Steps in the strategic planning process
• Developing strategies and tactics
• Assessing the current state
• Setting goals and objectives
• Market research and analysis
• Using data to inform strategy
• Conducting market research
• Analyzing market trends
• Scenario planning
• What is scenario planning?
• Creating and evaluating scenarios
• Incorporating scenarios into strategic planning
• Financial analysis
• Using financial data in strategic planning
• Forecasting financials
• Assessing financial performance
• Strategy development and implementation
• Expert guidance in strategy implementation
• Ensuring alignment with business goals
• Customized strategic planning services
• Change management consulting
• Managing organizational change
• Implementing new strategies and processes
• Maximizing employee buy-in and adoption
• Performance improvement consulting
• Developing strategies for performance enhancement
• Measuring and monitoring progress
• Identifying areas for improvement
• Success stories
• Real-world examples of successful strategic planning
• Key takeaways and lessons learned
• Applying principles to your own strategy
• Challenges and failures
• Identifying common pitfalls and how to avoid them
• Applying insights to your own strategy
• Learning from failed strategic planning efforts
• Industry-specific case studies
• Examples of strategic planning in specific industries
• Best practices and lessons learned for your industry
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• OKR (Objectives and Key Results)
• Understanding the OKR framework
• Integrating OKRs into strategic planning
• Setting and tracking objectives and key results
• Blue Ocean Strategy
• What is Blue Ocean Strategy?
• Case studies and success stories
• Applying Blue Ocean Strategy to your business
• Balanced Scorecard
• What is the Balanced Scorecard?
• Benefits and limitations of the model
• Using the Balanced Scorecard in strategic planning
• Strategic planning frameworks
• Understanding PEST Analysis: A Comprehensive Guide

Learn about PEST analysis and its significance in strategic planning

Welcome to our comprehensive guide on PEST analysis, one of the most widely used strategic planning frameworks in the business world. Whether you are a business owner, a marketer, or a student studying business management, understanding PEST analysis is crucial for success. In this article, we will delve into the nitty-gritty of PEST analysis, from its definition and purpose to its application in real-world scenarios. So, what exactly is PEST analysis? PEST stands for Political, Economic, Social, and Technological factors, and it is a framework used to analyze the external environment in which a business operates. By examining these four key areas, businesses can gain a better understanding of the opportunities and threats that may impact their operations.

It is an essential tool for strategic planning and decision-making, as it allows businesses to adapt and stay ahead of the competition. Throughout this article, we will explore each element of PEST analysis in detail and provide real-life examples to help you grasp the concept better. We will also discuss the benefits of using PEST analysis and how it can be applied to various industries. Whether you are new to PEST analysis or looking to refresh your knowledge, this guide has got you covered. So, let's dive into the world of PEST analysis and discover how it can help your business thrive in today's ever-changing landscape. In today's fast-paced and ever-changing business landscape, it is crucial for organizations to have a strong understanding of the external factors that may impact their operations. This is where PEST analysis comes into play.

PEST analysis is a strategic planning framework that helps businesses assess the Political, Economic, Social, and Technological factors that may affect their industry and operations. In this article, we will delve into each of these four components in detail to provide a comprehensive understanding of PEST analysis and how it can be used to inform decision-making. Political factors refer to the laws, regulations, and policies set by the government that can have a significant impact on businesses. This can include tax policies, trade regulations, labor laws, and political stability. For example, changes in tax policies can greatly affect a company's profitability, while political instability in a country can disrupt supply chains and business operations.

It is important for businesses to stay up-to-date on political developments and understand how they may impact their operations. Economic factors refer to the overall economic conditions of a country or region and how they may impact businesses. This can include inflation rates, interest rates, consumer spending habits, and GDP growth. Economic factors can greatly influence consumer behavior and purchasing power, which in turn affects businesses. For instance, a recession may lead to a decrease in consumer spending, resulting in lower sales for businesses.

It is crucial for businesses to carefully monitor economic trends and adjust their strategies accordingly. Social factors encompass the cultural norms, values, beliefs, and demographics of a society. These factors can greatly influence consumer behavior and preferences. For example, a company selling halal meat products would need to consider the cultural norms and beliefs of their target market before entering a new market. Social factors also include lifestyle trends, education levels, and population demographics.

Understanding these factors can help businesses tailor their products and services to better meet the needs of their target market. Technological factors refer to the advancements and innovations in technology that can impact businesses. In today's digital age, technology plays a crucial role in shaping industries and disrupting traditional business models. Technological factors can include new software, hardware, automation, and artificial intelligence. Businesses must be aware of technological developments in their industry and adapt accordingly to stay competitive. It is important to note that these four components of PEST analysis may vary depending on the industry and location of the business.

For instance, a company operating in the healthcare industry may face different political and social factors compared to a company in the retail industry. Similarly, a business operating in a developing country may face different economic factors compared to a business in a developed country. In conclusion, PEST analysis is an essential tool for businesses of all sizes and industries. By analyzing the external environment through the lens of political, economic, social, and technological factors, businesses can identify potential opportunities and threats and make informed decisions to stay ahead of the competition. It is crucial for businesses to regularly conduct PEST analysis to stay updated on external factors that may impact their operations and adjust their strategies accordingly.

Political Factors

Technological factors, advancements in technology:, impact on industry:, opportunities and threats:, social factors, demographics:, cultural norms and values:, social trends:, consumer attitudes and behaviors:, ethical considerations:, economic factors, macroeconomic conditions, economic policies, inflation rates and interest rates, consumer spending habits.

By considering these factors, organizations can better understand their external environment and make strategic decisions that will help them thrive in the long run. In conclusion, PEST analysis is an essential tool for businesses to understand their external environment and make informed decisions. By analyzing the political , economic , social , and technological factors, organizations can identify potential opportunities and threats and develop strategies to adapt and thrive in a constantly changing market. It is important for businesses to regularly review and update their PEST analysis to stay ahead of the competition and maintain a competitive advantage.

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• The Power of Strategic Planning
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• The Importance of Analyzing Market Trends
• Assessing Financial Performance: A Comprehensive Guide
• Applying Insights to Your Own Strategy: How to Succeed in the Face of Challenges and Failures
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• How to Conduct a PEST Analysis: Uncovering Key Factors for Strategic Planning
• How to Use the Balanced Scorecard in Strategic Planning
• A Comprehensive Look at Managing Organizational Change
• Learning from Failed Strategic Planning Efforts: Understanding the Importance of Reflection and Adaptation
• Best Practices and Lessons Learned for Your Industry: Capturing Readers' Attention
• Integrating OKRs into Strategic Planning: A Comprehensive Overview
• Real-World Examples of Successful Strategic Planning
• Maximizing Employee Buy-In and Adoption: Strategies for Successful Change Management
• Creating an Action Plan: A Comprehensive Guide to Strategic Planning
• The Importance of Assigning Responsibilities in the Strategic Planning Process
• Understanding PEST Analysis: Identifying External Factors for Strategic Planning
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• A Beginner's Guide to Conducting a SWOT Analysis
• How Customized Strategic Planning Services Can Boost Your Business
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• Using SWOT Analysis to Inform Strategy: A Comprehensive Overview
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Improving Performance: Identifying Areas for Success

• Applying Strategies to Boost Your Business
• Strategies for Enhancing Performance: Unlocking Your Potential
• How to Master Scenario Planning: A Comprehensive Guide
• Examples of Strategic Planning in Specific Industries
• A Complete Guide to Strategic Planning
• Understanding Porter's Five Forces: A Comprehensive Overview
• Using Data to Inform Strategy: How to Use Market Research and Analysis for Strategic Planning

Benefits and Limitations of the Model

• Developing Strategies and Tactics: A Comprehensive Guide to the Strategic Planning Process

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What is PEST Analysis?

The PEST analysis is a useful tool for understanding market growth or decline, and as such the position, potential and direction for a business. PEST is an acronym for Political, Economic, Social and Technological factors, which are used to assess the market for a business or organizational unit. Sometimes it's expanded to include legal and environmental factors and called a PESTLE analysis.

A PEST analysis guides us to identify effective strategies for setting priority, allocating resources, planning for time and development roadmap and formulating control mechanisms. With this analysis, you can identify potential opportunities and threats associated with your strategy and figure out ways to take advantage of them and avoid them.

Political Factors

These are all about how and to what degree a government intervenes in the economy. This can include - government policy, political stability or instability in overseas markets, foreign trade policy, tax policy, labour law, environmental law, trade restrictions and so on.

It is clear from the list above that political factors often have an impact on organisations and how they do business. Organisations need to be able to respond to the current and anticipated future legislation, and adjust their marketing policy accordingly.

Economic Factors

Economic factors have a significant impact on how an organisation does business and also how profitable they are. Factors include - economic growth, interest rates, exchange rates, inflation, disposable income of consumers and businesses and so on.

These factors can be further broken down into macro-economical and micro-economical factors. Macro-economic factors deal with the management of demand in any given economy. Governments use interest rate control, taxation policy and government expenditure as their main mechanisms for managing macro-economic factors.

Micro-economic factors are all about the way people spend their incomes. This has a large impact on B2C organisations in particular.

Social Factors

Also known as socio-cultural factors, social factors are the areas that involve the shared belief and attitudes of the population. These factors include - population growth, age distribution, health consciousness, career attitudes and so on. These factors are of particular interest as they have a direct effect on how marketers understand customers and what drives them.

Technological Factors

We all know how fast the technological landscape changes and how this impacts the way we market our products. Technological factors affect marketing and the management thereof in three distinct ways:

• New ways of producing goods and services
• New ways of distributing goods and services
• New ways of communicating with target markets

Analyzing these factors will help you and your team gain a comprehensive understanding of the external (macro environmental) factors that may positively or negatively affect your company's strategic planning process. With access to such knowledge, you can quickly come up with strategies that would put the company on the fast track to achieving its goals.

Benefits of PEST Analysis

A company may have all the information it requires about the quality of its infrastructure, the extent of funds, and the employee talent available to it, but it may not be fully aware of the external environment in which it is to operate or launch a new project. It can even predict future prospects of a project or product by studying the PEST factors. Let's list out the some benefits that we can gain from the findings of a PEST Analysis:

• Provides an understanding of the wider business environment.
• Encourages the development of strategic thinking.
• Straightforward and only costs time to do.
• May raise awareness of threats to a project.
• Can help an organisation to anticipate future difficulties and take action to avoid or minimise their effect.
• Can help an organisation to identify and exploit opportunities.

An Example - Impact of Technology Factor

Let's take a moment to consider the impact that technology has had on our country's economy. Most people will agree that technology has made our lives much easier. The Internet, for example, has changed the way we bank, pay our bills, search for goods and services, book holidays, undertake study, and shop.

However, technology has caused serious damage to some businesses. In terms of casualties, the good old fashioned local CD & DVD rental store has taken a monumental hit. Why? Well, let's face it, there's now little need to visit a CD & DVD rental store. Today, most households have access to YouTube, Apple TV and Google Movies on Play Store and etc.

Conducting PEST Analysis

If a PEST analysis involves analyzing forces we have little or no control over, why bother considering them at all? To answer this question, a PEST analysis encourages management to carefully study what is happening in the environments that encapsulate their business.

As business managers we must understand that, although these external forces are largely outside of our control, we still need to carefully consider them. The underlying function of the analysis is not just to review what has already happened, but also predict what is likely to happen in the near future. This ensures we are aware of them and highly perceptive to their possible affects on our business.

The external influences on business vary from country to country. It is very important that those factors are considered. To conducting a PEST Analysis, we can come up a set of brainstorming questions with answers and actions of them related to each of the four factors:

The political arena has a huge influence upon the regulation of businesses, and the spending power of consumers and other businesses. You must consider issues such as:

• How stable is the political environment?
• Will government policy influence laws that regulate or tax your business?
• What is the government's position on marketing ethics?
• What is the government's policy on the economy?
• Does the government have a view on culture and religion?
• Is the government involved in trading agreements such as EU, NAFTA, ASEAN, or others?

The economic environment is a direct influence on all businesses. Obviously if you are studying marketing there is a huge element of economics within the topic itself, and you should be no stranger to the principles of economics. You need to look at:

• Interest rates
• The level of inflation Employment level per capita
• Long-term prospects for the economy Gross Domestic Product (GDP) per capita, and so on

The social and cultural influences on business vary from country to country. It is very important that such factors are considered. Factors to be considered include:

• What is the dominant religion?
• What are attitudes to foreign products and services?
• Does language impact upon the diffusion of products onto markets?
• How much time do consumers have for leisure?
• What are the roles of men and women within society?
• How long are the population living? Are the older generations wealthy?
• Do the population have a strong/weak opinion on green issues?

Technology is vital for competitive advantage, and is a major driver of globalization. Consider the following points:

• Does technology allow for products and services to be made more cheaply and to a better standard of quality?
• Do the technologies offer consumers and businesses more innovative products and services such as Internet banking, new generation mobile telephones, and etc.?
• How is distribution changed by new technologies e.g. books via the Internet, flight tickets, auctions and etc.?
• Does technology offer companies a new way to communicate with consumers e.g. banners, Customer Relationship Management (CRM), and etc.?

Where you have identified significant opportunities, build the actions you'll take to exploit them into your Business Plan. Where you've identified significant risks, take appropriate action to manage or eliminate them.

PEST Analysis Template

The table below shows a PEST Analysis Template that consists of some typical kinds of factors people would consider in developing a PEST Analysis model.

PEST Analysis Variants

Traditionally, PEST analysis focuses on political, economic, sociological and technological factors, but increasing awareness of the importance of legal, environmental and cultural factors has led to the evolution of a growing number of variants.

For example:

• PESTLE - Political, Economic, Social, Technological, Legal and Environmental
• SPECTACLES - Social, Political, Economic, Cultural, Technological, Aesthetic, Customers, Legal, Environmental, Sectoral
• PESTLIED - Political, Economic, Socio-Cultural, Technological, Legal, International, Environmental, Demographic.
• PEST-C , where the C stands for cultural
• SLEEPT-C - Sociological, Legal, Economical, Environmental, Political, Technological and Cultural.
• LONGPESTLE : Local, National, and Global versions of PESTLE. (These are best used for understanding change in multinational organizations.)

Choose the version that best suits your situation.

PEST Analysis Example

The figure below shows a PEST Analysis example of the new energy vehicles industry.

PESTLE Analysis Example

The figure below shows a PESTLE Analysis example of a pharmaceutical company. PESTLE is a varied form of PEST. It has two additional columns L and E for listing the Legal and Environmental factors.

PEST vs SWOT Analysis

PEST is useful before SWOT Analysis - not generally vice-versa - PEST definitely helps to identify SWOT factors. PEST Analysis is often linked with SWOT Analysis, however, the two tools have different areas of focus. There is overlap between PEST and SWOT, in that similar factors would appear in each. That said, PEST and SWOT are certainly two different perspectives:

• PEST Analysis looks at "big picture" factors that might influence a decision, a market, or a potential new business.
• PEST assesses a market, including competitors, from the standpoint of a particular proposition or a business.
• SWOT is an assessment of a business or a proposition, whether your own or a competitor's. at a business, product-line level.

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PESTLE Analysis

Insights and resources on business analysis tools

How to Do a PESTLE Analysis (3 Step Guide)

Last Updated: Apr 9, 2024 by Thomas Bush Filed Under: PEST Analysis

PESTLE analysis can be extremely powerful when done correctly, which is a lot easier than it sounds. In this guide, we want to make it as easy as possible for you to do a PESTLE analysis.

That’s why we’ve created a simple, three-step approach that you can use to conduct powerful analyses and write meaningful reports, every single time!

1. Know the Categories

The first step in conducting a PESTLE analysis is understanding the PESTLE model itself — in particular, the six categories. The six broad categories of business variables that PESTLE analysis draws from are:

Sociocultural

Technological, environmental.

Now let’s discuss what you need to know about each of those categories.

All businesses are affected by political factors — especially businesses that operate across borders. Broadly, political factors include taxation policies, trade tariffs, and various other rules and regulations.

The local and global economies play a large role in business, and its the economic factors of PESTLE analysis which describe that role. Examples of economic factors include Gross Domestic Product (a measure of the total value of goods and services produced across a year), exchange rates, and inflation.

Sociocultural factors, sometimes referred to as just ‘social’ factors, account for how the societal and cultural aspects of a chosen market might affect business. These factors include age demographics, ethnicities, and cultural differences. One particularly interesting example is the prominence consumerism in a chosen demographic.

Technology is also a crucial factor in business analysis. In PESTLE analysis, technological factors can refer to the development of new technologies or the infrastructure for and access to established ones. Examples include the growing importance of cybersecurity, the widespreadness of mobile phones, and access to an internet connection.

Legal factors tend to have a large overlap with political factors in PESTLE analysis, but they broadly refer to the laws and regulations your business needs to adhere to. Examples include import and export laws or copyright laws.

An increasingly important category is the environmental one. Whether your business is directly related to the outdoors or not, factors such as the depletion of natural resources, climate change, and pollution could very likely affect your operations.

2. Do the Research

Once you’re familiar with the six categories of PESTLE analysis, the next step is to start doing your research . If you’re new to business analysis, this can be a lot more difficult than it sounds. You’re probably wondering what information to include in your PESTLE analysis and where to find it, but we’ll answer both of those questions just now!

What Information to Include

The six categories of PESTLE analysis give you a good idea of what kind of information to include in your analysis. If you’re looking for rules on which specific factors to include, there aren’t any!

It’s up to you to decide what information is relevant to the scope of your analysis. Our suggestion is to have a good thinking about your business, with the goal of determining which categories are most relevant to you. Once you know which categories are most relevant, you can dedicate more time and effort into finding information in those categories.

This is why a good PESTLE analysis requires a good understanding of the business or organization which you’re looking at. The more you know about your business, the more relevant information you’ll choose for analysis.

Where to Find Information

Knowing where to source your information or data is another tough aspect of PESTLE analysis. We’ve found that there’s a huge amount of data available on the web, if you only search hard enough. Try Googling terms like “number of cellphone users in X country” (as a technological factor) or “global year by year economic growth” (as an economic factor).

Aside from search engines and the web, there are two other noteworthy choices for sourcing your information. The first of them is government reports, which often contain large amounts of reliable data on specific topics. The second is third party reports by specialist companies, which often cost a fair bit of money, but include reliable, industry-specific information that you might not find elsewhere.

3. Put It All Together

Once you’ve sourced your information, the only thing left is to put all the pieces together. Again, there’s no set recipe on how to do this, but we include some suggestions on how you can write a PESTLE analysis report below.

How to Write a PESTLE Analysis Report

If we had to write a PESTLE analysis report, i.e. a single document to summarize all the findings of our analysis, here’s how we’d do it:

• Create six sections for the core content. Use one section for each category, and include all the relevant factors within each section. If necessary, divide the sections up into subsections which cover bulkier topics.
• Add an introduction and conclusions. You’ll find that a quick introduction which explains the goal of your PESTLE analysis is extremely useful for readers. Likewise, a conclusion section (with plenty of specific analysis, drawing meaningful conclusions from the data presented in the report) is extremely valuable.

Other Tips for Success

Here are a few more tips on how to succeed with your PESTLE analysis:

• Know your business. As we mentioned above, the content of a PESTLE analysis should be weighted towards the factors which are most relevant to your business. This allows you to keep the analysis (and the report you ultimately create) relevant. If you think an entire category of the PESTLE model isn’t relevant, feel free to leave it out and focus on the others.
• Keep it simple. With vast amounts of data and a whopping six categories in the PESTLE framework, it’s easy to conduct an absolute behemoth of an analysis. Unfortunately, PESTLE analyses are better kept short and sweet. This guarantees that you’ll focus on relevant information, and ensures that readers will walk away from the analysis with specific, actionable ideas.

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PESTLE Analysis

• Getting Started
• Technological
• Environmental

Business Librarian

PEST analysis (political, economic, socio-cultural and technological) describes a framework of macro-environmental factors used in the environmental scanning component of strategic management. It is part of an external analysis when conducting a strategic analysis or doing market research and summarizes the different macro-environmental factors to be taken into consideration. It is a strategic tool for understanding market growth or decline, business position, potential and direction for operations. Source: Wikipedia https://en.wikipedia.org/wiki/PEST_analysis

For a comprehensive overview of how to create a PESTLE analysis, see the PESTLE Strategy Guide.

Here are several templates you can use to document your research.

• PEST Market Analysis Tool (.doc)
• PESTLE Template
• Next: Political >>
• Last Updated: Sep 27, 2022 11:51 AM
• URL: https://guides.lib.fsu.edu/pestle

© 2022 Florida State University Libraries | 116 Honors Way | Tallahassee, FL 32306 | (850) 644-2706

Industry Research

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What is a PESTEL Analysis?

Resources for a pestel analysis.

• General U.S. and International Industry Reports and Trends

A PESTEL analysis is a framework or tool used by marketers to analyze and monitor the macro-environmental (external marketing environment) factors that have an impact on an organization, company, or industry.  It examines the Political, Economic, Social, Technological, Environmental, and Legal factors in the external environment.  A PESTEL analysis is used to identify threats and weaknesses  which are used in a SWOT analysis.

Political factors include government policies, leadership, and change; foreign trade policies; internal political issues and trends; tax policy; regulation and de-regulation trends.

Economic factors include current and projected economic growth; inflation and interest rates; job growth and unemployment; labor costs; impact of globalization; disposable income of consumers and businesses; likely changes in the economic environment.

Social factors include demographics (age, gender, race, family size); consumer attitudes, opinions, and buying patterns; population growth rate and employment patterns; socio-cultural changes; ethnic and religious trends; living standards.

Technological factors affect marketing in (1) new ways of producing goods and services; (2) new ways of distributing goods and services; (3) new ways of communicating with target markets.

Environmental factors are important due to the increasing scarcity of raw materials; pollution targets; doing business as an ethical and sustainable company; carbon footprint targets.

Legal factors include health and safety; equal opportunities; advertising standards; consumer rights and laws; product labeling and product safety.

Public Company Websites.  Google search the company name and "investor relations."  This will often provide links to Annual Reports; financial reports such as 10-K, 10-Q, and 8-K; and corporate social responsibility reports.

• Business Source Complete (EBSCO) Country Reports, on the right side tool bar, links to extensive current reports providing information on the PESTEL factors in a country. Also, search for articles in periodicals and journals on individual PESTEL factors in the country, articles on a company and the industry it operates in.
• Nexis Uni (Replaced Lexis Nexis Academic) PESTEL factor information is provided for countries. At the landing page, select Publication and enter "United States" and date > 07/01/2016, for example, in the search box. Begin typing PRS Group Political in the Publication box and then select PRS Group Political Risk Service that appears below the box and click Search.

Select News instead of Publication to search for articles on companies, industries, and individual PESTEL factors. 

Open the Business section and select Company Dossier to search for information on a specific company.  The company report will include its brands and competitors, with links to current news articles, court cases, and intellectual property.

• IBISWorld Provides relevant industry reports; find the industry your company operates in. Economic information can be found in the Products & Market - Demand Determinants section. Technology and regulatory information can be found in the Operating Conditions section.
• Wall Street Journal Available from 1984-present in ProQuest Global Newsstream.
• New York Times Available from 1980-present in ProQuest Global Newsstream.
• US Newsstream ProQuest. Full text of 300+ U.S. and international news sources.
• Pew Research Center A nonpartisan fact tank that studies "U.S. politics and policy; journalism and media; internet, science and technology; religion and public life; Hispanic trends; global attitudes and trends; and U.S. social and demographic trends."
• Pew Research Center Global Indicators Database Pew Research Center conducts public opinion surveys around the world on a broad array of subjects ranging from people's assessments of their own lives to their views about the current state of the world and important issues of the day.
• CQ Researcher Online (CQ Press) A collection of reports covering political and social issues, with regular reports on topics in health, international affairs, education, the environment, technology and the U.S. economy from 1991 to the present.
• data.census.gov U.S. Census Bureau platform that provides data on the U.S. people and economy: population, education, business, employment, health, housing, income and poverty, economy, families and living arrangements, and international trade.
• << Previous: Porter's Five Forces
• Next: General U.S. and International Industry Reports and Trends >>
• Last Updated: Sep 11, 2023 9:02 AM
• URL: https://libguides.libraries.wsu.edu/industryresearch

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PEST analysis template

There are a lot of external factors that can impact your company's performance. A PEST analysis helps you analyze political, economic, sociocultural, and technological factors that could affect your business, so you can be prepared for them if they occur.

Sign up to create your own template.

INTEGRATED FEATURES

Recommended apps.

When your external world starts to shift around your business, it’s important for your team to brace themselves for major changes. The best way to kick-off this process is by using a PEST analysis template.

What is a PEST analysis?

What does pest stand for.

PEST is an acronym that stands for political, economic, socio-cultural, and technological. These are all external factors your team should consider when making business decisions. You may also see PESTEL which includes environmental and legal, in addition to the four mentioned previously.

What is a PEST analysis template?

A PEST analysis template is a reusable outline that your team can use to help regularly complete a PEST analysis. Use a PEST analysis template every time your team conducts a new PEST analysis—whether that’s for a product expansion, a change in the market, or even if your team is proactively monitoring the external business environment. 

Using a PEST analysis template ensures that your team creates a similar report every time they conduct an analysis. When done consistently, your team can start to track environmental trends and anticipate any future issues in the environment moving forward.

How do you use a PEST analysis template? 

A PEST analysis template typically contains a section for each part of the acronym—either in a quadrant-style or a Kanban-style board. A project manager duplicates the PEST analysis template and uses the copy as a new brainstorming board. Team members can then add potential risks to the corresponding sections or columns. For example, someone on the team might add new legislation that affects your business underneath the “Political” column. 

Integrated features

Board View . Board View is a Kanban board-style view that displays your project’s information in columns. Columns are typically organized by work status (like To Do, Doing, and Done) but you can adjust column titles depending on your project needs. Within each column, tasks are displayed as cards, with a variety of associated information including task title, due date, and custom fields. Track work as it moves through stages and get at-a-glance insight into where your project stands.

Portfolios . Portfolios make it easy to organize and track all of your team's multiple projects in a single view. Get a high-level overview of how all your projects are progressing, then drill in for more details to address risks. Plus, share status updates across programs and keep stakeholders up to date without having to schedule a status meeting.

Project Overview . Project Overview is your one-stop-shop for all important project context. Give your team a bird’s-eye view of the what, why, and how of your project work. Add a project description to set the tone for how you’ll work together in Asana. Then, share any important resources and context—like meeting details, communication channels, and project briefs—in one place.

Custom fields . Custom fields are the best way to tag, sort, and filter work. Create unique custom fields for any information you need to track—from priority and status to email or phone number. Use custom fields to sort and schedule your to-dos so you know what to work on first. Plus, share custom fields across tasks and projects to ensure consistency across your organization. 

Google Workplace . Attach files directly to tasks in Asana with the Google Workplace file chooser, which is built into the Asana task pane. Easily attach any My Drive file with just a few clicks.

Dropbox . Attach files directly to tasks in Asana with the Dropbox file chooser, which is built into the Asana task pane.

Microsoft Teams . With the Microsoft Teams + Asana integration, you can search for and share the information you need without leaving Teams. Easily connect your Teams conversations to actionable items in Asana. Plus, create, assign, and view tasks during a Teams Meeting without needing to switch to your browser.

Slack . Turn ideas, work requests, and action items from Slack into trackable tasks and comments in Asana. Go from quick questions and action items to tasks with assignees and due dates. Easily capture work so requests and to-dos don’t get lost in Slack.

How do you create a PEST analysis? .css-i4fobf{-webkit-transition:-webkit-transform 200ms ease-in-out;transition:transform 200ms ease-in-out;-webkit-transform:rotateZ(0);-moz-transform:rotateZ(0);-ms-transform:rotateZ(0);transform:rotateZ(0);}

The best way to create a PEST analysis is to start with a PEST analysis template in a collaborative work management tool . That way, your entire team can collaborate and add information to your analysis digitally, and your work will be documented and saved in the same place. After cloning your PEST analysis template, your team can add environmental risks into the corresponding sections of your PEST analysis.

PEST stands for political, economic, socio-cultural, and technological. You may also see the same concept referred to as “PESTEL” which includes legal and environmental in addition to the four previous factors.

What’s the difference between a PEST and SWOT analysis?

A PEST analysis identifies key external factors that may affect how you conduct business. A SWOT analysis is used to identify strengths and weaknesses of your current business. Both can (and should!) be used to craft and develop your team’s long-term strategy.

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Home Blog How to Do a PESTEL or PEST Analysis (Quick Step by Step Guide)

How to Do a PESTEL or PEST Analysis (Quick Step by Step Guide)

Performing a marketing analysis effectively is essential for evaluating the profitability of business ventures and determining how conducive the environment may be for a business venture. The Pest Analysis is an important model that can be used as a scale to measure such factors to determine the course of action for a business.

What is a PEST or PESTEL Analysis?

PESTEL analysis is an acronym for Political, Economic, Social, Technological, Environmental, and Legal. It is a strategic framework used by businesses and organizations to comprehend the macro-environmental factors they have to consider and navigate in their industry. It helps companies better understand the broader business landscape, inform strategic decision-making, and predict how future trends could impact their operations.

PEST analysis is a variant of PESTEL without the Environmental and Legal components. In a PEST Analysis, the following elements are present: Political, Economic, and Social factors and a Technological analysis to determine the market outlook to forge plans to steer the business in a specific direction.

Recent additions to this model have also included factors like Ethics and Demographic elements (STEEPLE and STEEPLED); however, for this article, we will stick to PEST and PESTLE analysis.

Key Elements of a PEST and PESTEL Analysis

Let’s delve into the elements of PESTEL and how they influence business:

Political Element

Political element of the analysis include evaluating government control, taxation policy, trade barriers, labor laws, and the sphere of the government’s influence in affecting the markets. Knowing such details is essential to ensure that a business can freely function within a market without the government negatively impacting profits and revenue. For example, selling a product that is highly subsidized by the government will not be profitable as the subsidy will undercut the price, making the venture unprofitable for private businesses.

Economic Element

The last thing any business needs is an unstable economic environment, such as an uncertain exchange rate, high interest and inflation rate or other economic factors which may hinder progress and profitability for a business. This is why the PEST or PESTEL analysis includes analyzing the economic conditions of the market to determine the scope for grows and expansion of a business

Social Element

This is another important consideration for a business. Certain types of products are either legally barred from production in certain countries or may be socially unacceptable for consumption by the vast majority of the populace. Furthermore, businesses can always make good use of social norms and values by ensuring that their marketing strategy not only respects them but also appeals to the socially acceptable standards of people to effectively sell a product.

Technological Element

This may include the availability of technology in a country, the rate to which technology is being adapted or changed in a specific market, Research and Development initiatives and the scope of production costs which may be associated with technology.

Environmental Element

Apart of PESTEL, the environmental analysis includes analysis of ecological and environmental factors like the impact of climate on tourism, insurance, farming, etc.

Legal Element

This also falls under the PESTEL realm and entails the evaluation of health, consumer, antitrust, employment and other types of laws in the country.

How to conduct a PEST or PESTEL Analysis? (Step by Step)

The process of conducting a PEST or PESTEL Analysis involves the following steps.

Step 1 – Identify the Scope: The first step involves identifying the scope of the analysis. In this step, we define the purpose, context, and time frame of the analysis.

Step 2 – Gather Information: Next, we research and gather data related to all the elements of PEST or PESTEL. For PEST, it will involve four elements, while for PESTEL it will involve gathering information for six elements. The use of reliable sources is important, this may involve resources such as government reports, research studies, newspaper articles, trade journals, etc.

Step 3 – Analyze the Information: Then, examine the data and identify how each factor could impact your business or project. Look for trends, changes, or events in each category.

Step 4 – Draw Conclusions: After analyzing the information, we draw the conclusions. Assess the potential impact of each factor on your business. This could be in the form of opportunities and threats or by performing a SWOT Analysis instead. In the case of analyzing opportunities and threats only, we consider internal and external factors. Opportunities are external factors that the company could leverage for its benefit, while threats are elements that could harm the organization.

Step 5 – Formulate Strategies: Then, based on the insights gathered, develop strategies to capitalize on the opportunities and mitigate the risks identified.

Step 6 – Review and Update: The PESTEL analysis should be an ongoing process and reviewed regularly as external macro-environmental factors can change quickly.

Making a PEST or PEST Analysis Using PowerPoint Templates

If you are looking for a head start, you might find it worth using a readymade PowerPoint Template. Below are some recommended templates that can help you create a PEST or PESTEL analysis for presentations and official use.

PEST Analysis PowerPoint Template

Whether you are looking to create a single slide with a PEST Analysis diagram or wish to show each aspect of your analysis with specific detail, this template can help you create a range of slides with both a summary of your analysis, as well as standalone slides to touch upon political, economic, social and technological aspects of your analysis.

Go to Download PEST Analysis PowerPoint Template

PEST Analysis Diagram Template for PowerPoint

As the name suggests, this is a template for creating a diagram of your PEST Analysis. The template offers three sample slides with different diagram designs to help you create a PEST analysis for your audience at a presentation.

Go to Download PEST Analysis Diagram Template for PowerPoint

PESTEL Analysis PowerPoint Template

If you would like to extend your analysis to add environmental and legal aspects, then you can use the PESTEL Analysis template. This template offers as many as 11 different sample slides with a range of layouts to help you create a PESTEL analysis.

Go to Download PESTEL Analysis PowerPoint Template

PEST or PESTEL analysis is often accompanied by other types of analysis. This is why you may find our business analysis tips and analysis templates of help, especially our posts about SWOT Analysis and Boston Matrix .

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SWOT Analysis and PEST Analysis – When to Use Them

Updated on: 5 January 2023

When planning a project it is important to learn about the internal and external factors that can affect the project. There are some excellent strategic planning methods that you can use analyze all these factors. SWOT analysis and PEST analysis are two of the most frequently used planning methods. Below is a brief introduction to both methods and a comparison of SWOT analysis and PEST analysis .

What is SWOT Analysis?

SWOT, when broken down simply means analyzing the:

• Strengths – The advantages you have over the competition concerning this project.
• Weaknesses – The disadvantages you have internally compared with your competitors.
• Opportunities – Current external trends which are waiting to be taken advantage of.
• Threats – External movements which may cause a problem and have a negative impact on your business.

Sometimes SWOT is referred to as SLOT, where weaknesses are names as liabilities. By working through each of these points it is possible to identify any internal disadvantages or advantages which could benefit or hinder the outcome of a planned project. In addition to evaluating the state internally, this method is also able to identify the external factors which could also make a difference to the success or failure of a project.

You can easily create SWOT diagrams using our diagramming tool . Or you can use our SWOT analysis templates to get started instantly.

Click here for more SWOT analysis templates by Creately >>

One of many SWOT analysis templates available at Creately ( click to use at template )

Using the Information

By knowing this information it can be possible to plan a successful project that is ready to work around certain problems effectively and to avoid failure. It is a good idea and excellent practice to work through the SWOT Analysis with your team in the early stages of project planning. Brainstorming is a great way of introducing all the relevant internal and external factors for each section of the analysis.

What is PEST Analysis?

PEST stands for the analysis of the external factors which are beneficial when conducting research before beginning a new project or to help conduct market research. These factors are:

• Political – Laws, global issues, legislation and regulations which may have an effect on your business either immediately or in the future.
• Economic – Taxes, interest rates, inflation, the stock markets and consumer confidence all need to be taken into account.
• Social – The changes in lifestyle and buying trends, media, major events, ethics, advertising and publicity factors.
• Technological – Innovations, access to technology, licensing and patents, manufacturing, research funding, global communications.

Pest can also be known as PESTLE which includes other factors such as:

• Legal – Legislation which has been proposed and may come into effect and any passed legislations.
• Environmental – Environmental issues either locally or globally and their social and political factors.

Unlike SWOT this strategy is more directly aimed at the external macro environmental factors that might be affecting the position of your business, the reasons behind growth or decline in the market and also identify new directions for the business as a whole. Creately has some excellent PEST analysis templates for you to get started instantly. Best of all you can use our PEST Analysis Tool to draw them.

PEST analysis template available at Creately ( click to use as template )

Related Reading: SWOT analysis vs GAP analysis

Comparing SWOT Analysis Vs PEST Analysis

Directly comparing SWOT vs PEST is probably the wrong thing to do. They are both planning methods that give tremendous insights for you to successfully execute projects.

The disadvantage of PESTLE analysis is it doesn’t consider the internal factors of your organization. It deeply analyzed the external factors that might affect your project or organization. So if you plan your projects based only on the PEST analysis you will not have a chance to match your strengths to a current need.

SWOT analysis considers both the internal and external factors. It captures the external factors in the opportunities and threats section. However, when creating a SWOT diagram a deep analysis of external factors are not performed. At least not as extensively as a PEST analysis. So you might miss out on external factors that can benefit your project.

So a better approach would be to perform an extensive PEST analysis and use that finding in the opportunities and threats section in the SWOT analysis .

It is best practice to do the PEST analysis and include the results in SWOT analysis

Working as a Team for the Benefit of a Project

When teams are not in the same building it can be difficult to get together and brainstorm effectively about a project. This could lead to vital information getting neglected, thus damaging the project. You can easily avoid this issue by using the collaboration facilities provided by Creately. The project manager can start drawing the SWOT and PEST analysis and invite another team member to contribute to the diagram. This makes it easier for all relevant departments and team members to contribute. It reduces the possibility of important information being missed.

The results which have been recorded on your Creately SWOT template can then be used to plan a project carefully and overcoming problems which could cause significant issues to the positive outcome of the project. Being prepared for all eventualities is vital in business, which is why SWOT and PEST analysis is so important.

Remember it is never enough to simply have the information to hand, what is vital is the way that the analysis is used in order to boost profits, make sure a project is successful and to identify areas of opportunity which could transform the business for the better.

Pestle and Swot Analysis [Accessed 23/02/12]

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In the view of SWOT and PEST analysis, will SCOPE planning be a better choice. While SWOT focus on the internal factors and PEST focusing on the external factors, does that means that a SCOPE planning will be able to provide an overall insight of an issues or situation ?

I am new to this and actually quite confused on which kind of analysis that I should use for my business.

SWOT focuses on Internal and external factors. SW are internal while OT are external. SWOT is commonly use in evaluation business venture in both factors. PEST are use in Environmental Scanning,

How would one use the SWOT or PEST analysis for organizations or associations that have no competitors or that are leading world organizations? For example a small organization that operates on an worldwide level and is the sole representation for a specific industry? What kind of analysis can be conducted for this type of organization? Or are there always competitors no matter what the situation?

To me SWOT has always worked better. but also trying something else is no harm. Thank you for exploration.

Post the latest version of SWOT. Big thanks!!

Thanks for this comparison, did not know about the PEST. Reading your post, it’s another strategic tool, but let’s keep in mind these are far from real consulting use today, at McKinsey no one uses SWOT in real life.

this artical is very good ,which will be used by who should have more business skill

Please Sir send me some latest version of swot/pestel analysis, am intending to do my masters programme next year

swot analysys is good for everyone 🙂 it is a good for character

I like to the graphics – makes it a bit more clear.

thanks to your explanations….i was soo off, didnt know anything on SWOT and PESTLE

Respected Mr.Nishada, I am truely amazed by the explanation provided in the article.I work for a utility sector andi have been named as a team member to prepare the invitation for SOWT and PESTLE analysis. I am clueless and would like to know from were do i need to start and any references or guidance you could provide me.

Sincere Rgds, SheeGad

Hi Barbara, You can use the images, please do mention us in the credits.

Greetings Mr. Silva

I am a doctoral student writing my dissertation entitled “A PHENOMENOLOGICAL STUDY OF LEADERSHIP TOOLS FOR ENVIRONMENTAL SUSTAINABILITY”. Presently I am preparing my proposal for approval from the IRB. Within the content I have used your figure 2 (p.239) from your 2011 article “SWOT analysis vs PEST analysis and when to use them”. Would you grant permission to use this figure in my dissertation? I would be most grateful. Sincerely Barbara Barnes Plourde 1109 Magnolia Street New Smyrna Beach, FL 32168 (386) 428 6560

please help me friends, i want to learn PESTEL AND SWOT ANALYSIS, IAS Lectures notes for ACCA. I can’t buy the book and attend tuition . please share some of notes for me to learn them.If one can , pls send them to my mail ([email protected])

I think SWOT/PEST strategy is not only best for projects but also in business. If someone apply this strategy in business, I am sure they will never face any failure in their lifetime…Very well elaborated post on this topic, i must say.. No one will get this information on any other blog or forum..

Easily the best graphical analysis of SWAT and PEST that I have read in the last few years. For anything to do with the understanding of SWAT or PEST this will be my reference guide. Thank you for this.

I believe in the long stick, which is called the glider of two fans

hi… interesting to see this b/p/t diagram. Is it a standard or well acknowledge analysis tool. Couldn’t find anything on this on net. Any pointer for how it is used and details about it…

To me , the conventional SWOT AND PESTAL analysis still captives me more than any other because of its wide range and robust factors subsumed as internal and external determinants of a project or marketing plan.

[…] of your competition is to simply learn faster and lead your team in the same direction. Conduct PEST and SWOT Analysis regularly to examine your business, the competition and the marketplace, to stay ahead and grow […]

@Karl, looks like another excellent analysis tool. Thanks for sharing the diagram.

Another good analysis tool is B/P/T Analysis. It is much more focused on the internal product strategy and abilities of the organization vs PESTs on external factors.

https://creately.com/diagram/h1fa825f2/hWCoFsOtJdRFPyFEP4mb0tOR9RM%3D

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PESTEL Analysis

PESTEL is a strategic analytical tool used to assess external factors affecting businesses. PESTEL acronym stands for political, economic, social, technological, environmental and legal factors impacting companies. PESTEL has recently evolved from PEST analysis once intensifying forces of globalization and intensifying forces of competition in the marketplace coupled with other set of factors increased the importance and potential impact of environmental and legal factors on businesses.

The majority of resources explain the application of PESTEL assuming their audience is business owners. This article adopts an alternative approach and below is the explanation of the framework for business students who have been assigned by their educational institution to conduct PESTEL analysis.

Application of PESTEL as a part of your assignment can be facilitated via the following steps:

Step 1: Data Collection

If you have a choice, you should select a multinational corporation as a case study company to conduct PESTEL analysis due to the availability of relevant data about famous multinational enterprises. Company annual report along with official website of the company is the most comprehensive source of data needed to conduct PESTEL analysis. Additionally, you can purchase a company report on this portal. The portal offers reports about the most famous multinational enterprises and repots contain PESTEL analysis of respective companies. Online versions of the most popular business journals and magazines such as Wall Street Journal, The Economist and Inc. are also effective sources data to be used for your analysis.

Step 2: Deciding which factors to discuss

There is a vast range of political, economic, social, technological, environmental and legal factors that effect the company you have chosen as a case study. You do not have the space to discuss all of these factors in your paper; therefore, you will have to choose the most significant factors for your analysis. Unfortunately, there is no general rule or a universal recipe as to what factors to discuss.

The table below illustrates the most significant factors that affect business organizations listed in order of importance:

It is important to note that although in the table above factors affecting businesses are listed in order of importance, the patterns of data collected during the previous step may indicate that certain factors have the most significant impact compared to other factors on your chosen company for each category of factors. Your task is to determine specific factors under each category that proved to have the biggest impact on the business, appreciate the nature of the impact and understand the consequences.

Step 3: Writing

Depending on the total word count requirement specified in your assignment instructions, you will need to discuss about 4-5 factors under each category. The knowledge about the total word count requirement is important in a way that you need to discuss each category of factors and each specific factor with more or less equal numbers of words. One of the common and effective ways of conducting PESTEL analysis is to present the list of factors with the most significant impact on the form of table, similar to the table above, followed by discussion of each individual factor listed in the table.

To assist with your assignment, you can find samples of PESTEL analysis here .

📕 Studying HQ

Pest analysis: a powerful tool for business analysis and strategic planning, dr. wilson mn.

• May 31, 2023

When it comes to analyzing the environment in which a business operates, there are several frameworks and models that can be used. One such model is PEST, an acronym for Political, Economic, Sociocultural, and Technological factors. This model is widely used in the business world to identify the external factors that can impact an organization’s operations and to develop strategic plans accordingly.

What You'll Learn

Importance of the PEST Model in Business Analysis and Strategic Planning:

The PEST model is an essential tool for business analysis and strategic planning for the following reasons:

1. Identifying external factors: PEST analysis helps businesses identify the external factors that can impact their operations, such as changes in government policies, economic conditions, cultural shifts, and technological advancements.

2. Understanding the market: By analyzing the political, economic, sociocultural, and technological factors of a market, businesses gain a deeper understanding of the market’s needs and preferences.

3. Developing strategies: PEST analysis helps businesses develop strategies that are aligned with the external environment. By identifying the opportunities and threats, businesses can develop strategies that leverage the opportunities and mitigate the threats.

Have you ever wondered why some businesses succeed while others fail? The answer lies in their ability to adapt to the external environment. In today’s fast-changing world, businesses need to be agile and responsive to the changes around them. PEST analysis is a powerful tool that can help businesses stay ahead of the curve.

Components/Elements of the Model:

The PEST model consists of four main components/elements:

1. Political Factors: This component includes the impact of political factors on businesses, such as government policies, regulations, and stability. Political factors can create both opportunities and threats for businesses, depending on the nature of the political environment.

2. Economic Factors: This component includes the economic factors that businesses need to consider, such as inflation, interest rates, and exchange rates. Economic factors can impact businesses’ profitability, market demand, and cost of production.

3. Sociocultural Factors: This component includes the sociocultural factors that can impact businesses, such as demographic changes, cultural shifts, and lifestyle trends. Sociocultural factors can influence consumer behavior, market demand, and product preferences.

4. Technological Factors: This component includes the impact of technological factors on businesses, such as automation, innovation, and digitalization. Technological factors can create new opportunities for businesses, but they can also disrupt traditional business models and industries.

Visual Representation or Diagram:

PEST analysis is a powerful tool that can help businesses identify the external factors that can impact their operations and develop strategies to leverage the opportunities and mitigate the threats. By analyzing the political, economic, sociocultural, and technological factors, businesses can gain a deeper understanding of the market and adapt to the changes around them. Whether you are starting a new business or managing an existing one, PEST analysis should be an essential part of your strategic planning process.

Integration:

The PEST model can be integrated with other business tools and frameworks to enhance the effectiveness of strategic planning. One such framework is SWOT analysis, which stands for Strengths, Weaknesses, Opportunities, and Threats. By combining PEST analysis with SWOT analysis, businesses can gain a comprehensive understanding of their internal and external environment, and develop strategies that leverage their strengths and opportunities while mitigating their weaknesses and threats.

Another framework that can be integrated with PEST analysis is Porter’s Five Forces, which identifies the competitive forces that shape an industry’s profitability. By combining PEST analysis with Porter’s Five Forces , businesses can gain a deeper understanding of the industry’s external environment, and develop strategies that position them for success in the market.

The primary characteristics of the PEST model, such as its focus on the external environment and its holistic approach to analyzing the market, make it highly compatible with other business strategies. By integrating PEST analysis with other frameworks, businesses can gain a more comprehensive understanding of their internal and external environment and develop strategies that are aligned with their goals and objectives.

Implementing the PEST model in a business setting involves the following steps:

1. Identify the purpose: Define the purpose of the PEST analysis, such as identifying external factors that can impact the business, understanding the market, or developing strategies.

2. Gather information: Collect relevant information about the political, economic, sociocultural, and technological factors that can impact the business. This can involve conducting research, analyzing industry reports, and consulting with experts.

3. Analyze the information: Analyze the information collected and identify the key opportunities and threats that the business faces.

4. Develop strategies: Use the insights gained from the PEST analysis to develop strategies that leverage the opportunities and mitigate the threats.

To ensure a smooth implementation process, businesses should follow these tips:

1. Define the scope: Define the scope of the PEST analysis to ensure that it is focused and relevant to the business’s goals and objectives.

2. Involve stakeholders: Involve stakeholders, such as employees, customers, and suppliers, in the PEST analysis process to gain diverse perspectives and insights.

3. Use reliable sources: Use reliable sources of information, such as industry reports, government publications, and academic research, to ensure the accuracy and validity of the analysis.

4. Regularly update the analysis: Regularly update the PEST analysis to reflect changes in the external environment and ensure that the strategies developed are relevant and effective.

Successful execution of the PEST model requires the following resources and capabilities:

1. Skilled personnel: Businesses need skilled personnel who can conduct the PEST analysis, interpret the findings, and develop strategies that are aligned with the business’s goals and objectives.

2. Information systems: Businesses need access to reliable information systems that can collect, store, and analyze data about the external environment.

3. Analytical tools: Businesses need analytical tools that can help them analyze the data collected and identify key opportunities and threats.

The critical success factors for adopting the PEST model include:

1. Clearly defined goals and objectives.

2. Skilled personnel who can conduct the analysis and develop strategies.

3. Access to reliable information sources.

4. Regularly updated analysis to reflect changes in the external environment.

The potential challenges of adopting the PEST model include:

1. Difficulty in collecting reliable information.

2. Resistance to change within the organization.

3. Limited resources for conducting the analysis.

4. Lack of expertise in interpreting the findings and developing strategies.

Advantages of using the PEST model include:

1. Holistic approach: The PEST model takes a holistic approach to analyzing the external environment and considers a range of factors that can impact the business.

2. Comprehensive understanding: The PEST model provides businesses with a comprehensive understanding of the market and helps them develop strategies that are aligned with the external environment.

3. Strategic planning: The insights gained from the PEST analysis can be used to develop effective strategies that leverage opportunities and mitigate threats.

4. Flexibility: The PEST model is flexible and can be adapted to different industries and contexts.

5. Cost-effective: PEST analysis is a cost-effective tool that can be used by businesses of all sizes.

Limitations and potential pitfalls of the PEST model include:

1. Limited focus: PEST analysis focuses on the external environment and may not consider internal factors that can impact the business.

2. Lack of specificity: PEST analysis provides a broad overview of the external environment and may not provide specific insights into the market.

3. Inaccurate or incomplete data: PEST analysis relies on accurate and complete data, and incomplete or inaccurate data can lead to incorrect conclusions.

Mitigating Limitations and Challenges:

Businesses can mitigate the limitations and challenges of the PEST model by:

1. Combining with other models: Combining PEST analysis with other models can help businesses gain a more comprehensive understanding of the market and mitigate the limitations of the model.

2. Conducting internal analysis: Businesses should also conduct internal analysis to identify the internal factors that can impact the business.

3. Using reliable data sources: Businesses should use reliable data sources to ensure the accuracy and completeness of the analysis.

Practical Use:

The PEST model can be used to solve real-world business problems by:

1. Identifying opportunities and threats: PEST analysis can help businesses identify key opportunities and threats in the external environment and develop strategies that leverage the opportunities and mitigate the threats.

2. Understanding the market: PEST analysis can help businesses gain a deeper understanding of the market and its needs and preferences.

3. Developing competitive strategies: PEST analysis can help businesses develop competitive strategies that position them for success in the market.

Guidelines for Adapting the Model:

To adapt the PEST model to different industries and contexts, businesses should:

1. Define the scope: Define the scope of the analysis to ensure that it is relevant and focused on the business’s goals and objectives.

2. Identify relevant factors: Identify the relevant political, economic, sociocultural, and technological factors that can impact the business.

3. Collect reliable data: Collect reliable data from relevant sources to ensure the accuracy and completeness of the analysis.

4. Analyze and interpret the data: Analyze and interpret the data to identify key opportunities and threats and develop strategies that leverage the opportunities and mitigate the threats.

Case Study:

A real-life example of a company that successfully implemented PEST analysis is IKEA. IKEA used PEST analysis to identify key opportunities and threats in the external environment and develop strategies that were aligned with the external environment. For example, IKEA identified the growth of e-commerce as a key opportunity and developed an online platform to expand its reach and increase its sales. Additionally, IKEA identified the increasing trend towards sustainability and developed strategies to reduce its environmental impact, such as using renewable energy and sustainable materials in its products.

Emerging trends and innovations related to the PEST model include:

1. Environmental factors: The focus on environmental factors is increasing, and businesses need to consider the impact of climate change and sustainability on their operations.

2. Digitalization: The increasing use of digital technologies is creating new opportunities and threats for businesses, and they need to adapt to the changing technological landscape.

3. Geopolitical factors: The growing complexity of the geopolitical environment is creating new challenges for businesses, and they need to be aware of the impact of political instability and trade tensions on their operations.

These trends might impact the future viability and effectiveness of the PEST model by requiring businesses to consider new factors and adapt to the changing environment. However, the PEST model’s flexibility and adaptability make it well-suited to address these emerging trends.

To adapt to these changes and stay competitive, businesses can:

1. Regularly update their analysis: Regularly updating the PEST analysis to reflect changes in the external environment and incorporating emerging trends can help businesses stay ahead of the curve.

2. Use advanced analytical tools: Using advanced analytical tools, such as artificial intelligence and machine learning, can help businesses analyze large amounts of data and gain insights that were previously unavailable.

3. Foster a culture of innovation: Encouraging innovation and experimentation within the organization can help businesses stay agile and responsive to the changing environment.

Key Takeaways:

The PEST model is a powerful tool for business analysis and strategic planning that can help businesses identify external factors that can impact their operations, understand the market, and develop strategies that leverage opportunities and mitigate threats. Businesses can integrate PEST analysis with other frameworks to gain a comprehensive understanding of their internal and external environment and develop strategies that are aligned with their goals and objectives. Implementing the PEST model involves identifying the purpose, gathering information, analyzing the information, and developing strategies. Businesses can mitigate the limitations and potential challenges of the PEST model by combining it with other models, conducting internal analysis, and using reliable data sources.

The essential lessons for businesses and MBA students include:

1. The importance of analyzing the external environment: Analyzing the external environment is essential for businesses to stay competitive and adapt to the changing environment.

2. The value of a holistic approach: A holistic approach to analyzing the market can provide businesses with a comprehensive understanding of the market and help them develop effective strategies.

3. The need for regular updates: Regularly updating the analysis is essential for businesses to stay ahead of the curve and adapt to the changing environment.

1. What is PEST analysis?

PEST analysis is a framework for analyzing the political, economic, sociocultural, and technological factors that can impact a business’s operations.

2. What is the purpose of PEST analysis?

The purpose of PEST analysis is to identify external factors that can impact a business, understand the market, and develop strategies that leverage opportunities and mitigate threats.

3. What are the limitations of PEST analysis?

The limitations of PEST analysis include its limited focus on the external environment, lack of specificity, and reliance on accurate and complete data.

4. How can businesses mitigate the limitations of PEST analysis?

Businesses can mitigate the limitations of PEST analysis by combining it with other models, conducting internal analysis, and using reliable data sources.

Clarifications and Additional Insights:

The PEST model is a powerful tool for businesses to analyze the external environment and develop effective strategies. However, businesses need to be aware of the limitations and potential pitfalls of the model and take steps to mitigate them. Additionally, businesses need to stay abreast of emerging trends and innovations and adapt to the changing environment to stay competitive. By regularly updating their analysis, using advanced analytical tools, and fostering a culture of innovation, businesses can leverage the power of the PEST model to stay ahead of the curve and succeed in the market.

We encourage readers to share their experiences with using the PEST model in their business and to explore other resources on our website to learn more about business analysis and strategic planning.

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Genomic identification and evolutionary analysis of chemosensory receptor gene families in two Phthorimaea pest species: insights into chemical ecology and host adaptation

• Ruipeng Chen 1 ,
• Junjie Yan 1 ,
• Jacob D. Wickham 2 , 3 &
• Yulin Gao 1  

BMC Genomics volume  25 , Article number:  493 ( 2024 ) Cite this article

Metrics details

Insects rely on sophisticated sensitive chemosensory systems to sense their complex chemical environment. This sensory process involves a combination of odorant receptors (ORs), gustatory receptors (GRs) and ionotropic receptors (IRs) in the chemosensory system. This study focused on the identification and characterization of these three types of chemosensory receptor genes in two closely related Phthorimaea pest species, Phthorimaea operculella (potato tuber moth) and Phthorimaea absoluta (tomato leaf miner).

Based on manual annotation of the genome, we identified a total of 349 chemoreceptor genes from the genome of P. operculella , including 93 OR , 206 GR and 50 IR genes, while for P. absoluta, we identified 72 OR , 122 GR and 46 IR genes. Through phylogenetic analysis, we observed minimal differences in the number and types of ORs and IRs between the potato tuber moth and tomato leaf miner. In addition, we found that compared with those of tomato leaf miners, the gustatory receptor branch of P. operculella has undergone a large expansion, which may be related to P. absoluta having a narrower host range than P. operculella . Through analysis of differentially expressed genes (DEGs) of male and female antennae, we uncovered 45 DEGs (including 32ORs, 9 GRs, and 4 IRs).

Conclusions

Our research provides a foundation for exploring the chemical ecology of these two pests and offers new insights into the dietary differentiation of lepidopteran insects, while simultaneously providing molecular targets for developing environmentally friendly pest control methods based on insect chemoreception.

Peer Review reports

Introduction

Chemical sensing in insects relies on the participation of chemoreceptor organs, which are divided into two categories: olfactory receptors and gustatory receptors [ 1 ]. The process of insect olfaction recognition is complex and involves the participation of multiple chemical sensory genes. This process occurs at the level of the peripheral olfactory nervous system and involves chemosensory genes such as odorant receptors (ORs), ionotropic receptors (IRs), and gustatory receptors (GRs), along with other chemical sensory receptor proteins that recognize odorant molecules and deliver them to receptors [ 2 ]. The main organ involved in olfaction is the antennae, while the gustatory organs include the maxillary and labial palps, proboscis [ 3 ], legs [ 4 ], and ovipositors [ 5 ]. In addition, some insects also have gustatory receptor neurons distributed on the wing margins that can function as gustatory receptors to perceive taste [ 6 ]. Many substances, such as acids, carbon dioxide or carbonic acid, and even water, can be perceived through both taste (gustation) and smell (olfaction) [ 7 ]. Due to technical limitations, there is currently more research on the process of insect olfaction than on the signal transduction pathways of gustatory receptors [ 1 ].

The length of insect ORs is about 400–450 amino acids, consisting of 7 transmembrane domains [ 8 ]. Insect odorant receptors are structurally very different from mammalian odorant receptors, which belong to the G protein-coupled receptor (GPCR) gene family and have the typical characteristics of 7 transmembrane helical domains [ 9 ]. However, insect odorant receptors have opposite topologies, with their N-terminus located inside the cell and their C-terminus located outside the cell membrane [ 10 ]. Gustatory receptors (GRs) primarily function in taste perception. Insects use GRs to assess the quality of food and their environment, as well as to avoid toxic and harmful chemicals. Some of these GRs are crucial for insects to sense CO 2 . Taste receptors are expressed on neurons of taste organs and recognize non-volatile chemicals [ 11 ]. The first GRs in insects were identified in the genome of D. melanogaster [ 2 ]. With the completion of genome sequencing for various insects, research on taste receptors has revealed that the secondary structure of taste receptors is similar to that of odorant receptors, with multiple transmembrane domains and the same membrane topology as ORs [ 12 ]. According to the nature of ligands, insect taste receptors can be classified into bitter receptors, carbon dioxide (CO 2 ) receptors, and sugar receptors. Benton et al. identified the first ionotropic receptor gene family in insects from the genome of fruit flies [ 13 ]. Current studies on the function of ionotropic receptor genes in Drosophila melanogaster suggest that IRs are only expressed on olfactory sensory neurons (OSNs) in the olfactory cone sensilla and are involved in the detection of various amine and acid compounds. In addition to olfactory perception, IRs in fruit flies also participate in taste recognition, primarily perceiving compounds such as amino acids, amines, salts, and acids, which can indicate the nutritional value and quality of food to varying degrees. Gustatory receptor neurons (GRNs) responsible for taste perception exist in various taste organs, including the labellum, pharynx, legs, wing margins, and abdomen of fruit flies. IRs have been identified in all confirmed taste organs [ 14 ]. Furthermore, some studies suggest that IRs may also be involved in the perception of temperature and humidity in the environment [ 15 , 16 , 17 ].

The potato tuber moth, Phthorimaea operculella , belongs to the family Gelechiidae in the order Lepidoptera [ 18 ]. Phthorimaea operculella is primarily a pest of potatoes but also can be found in other solanaceous crops including tomato, tobacco, pepper and cape gooseberry [ 19 ]. It has been reported that P. operculella utilizes 60 alternate hosts of cultivated and wild plants and most of them belong to the Solanaceae family [ 20 ]. Phthorimaea operculella adults lay their eggs in leaves, stems, and tubers. The immature stages mine the leaves, resulting in foliar damage and burrow into tubers. Chemical signals play a crucial role in host selection, as the detection of plant odours could prompt the female to seek out the most suitable host for her offspring [ 19 ]. Numerous studies have found a direct correlation between the quantity of captured adults and the abundance of larvae on both the leaves and tubers [ 21 ]. The tomato leaf miner Phthorimaea absoluta belongs to same family Gelechiidae and order Lepidoptera and is also a significant insect pest that severely damages tomato crops. The pest was initially discovered in South America and quickly spread worldwide [ 22 ]. Solanaceous species are the main host plants for P. absoluta , with tomato, potato, and Solanum nigrum being the most preferable [ 23 ], but can also lay eggs and develop on various plants from the Amaranthaceae, Convolvulaceae, Fabaceae, and Malvaceae families [ 24 ]. Since the 1950s, P. absoluta has become a major pest of tomato crops in South America. Phthorimaea absoluta primarily damages host plants in their larval stage. The larvae create a narrow leaf mine by mining the leaf mesophyll when feeding and when populations are at high density, the larvae delve beneath sepals, mining through axillary buds in young stems and/or tomato fruits. When infesting potato plants, P. absoluta only feeds on the aboveground parts and does not damage the tubers and this can be a distinguishing characteristic from P. operculella [ 25 ].

Although high-quality genome data for P. operculella and P. absoluta have been published [ 26 ], our understanding of the chemosensory genes of these two insects remains limited. He et al. sequenced the antennal transcriptome of P. operculella and analyzed the function of the sex pheromone receptor PR in P. operculella [ 27 ]. Li et al. analyzed the types and functions of odorant-binding proteins (OBPs) in P. operculella , providing important insights for the study of the chemical ecology of P. operculella [ 28 ] . To further investigate the chemical ecological mechanisms of P. operculella and P. absoluta , comprehensive identification and analysis of their chemosensory genes are urgently needed and potentially of great significance.

In this study, a total of 93 ORs, 206 GRs, and 50 IRs were identified from the genome of P. operculella , while 72 ORs, 122 GRs, and 46 IRs were identified from the genome of P. absoluta . The gene structure and phylogenetic characteristics of these genes were analyzed. Transcriptional profiling of chemosensory receptor genes from P. operculella at different developmental stages and chemosensory organs was conducted. Through differential expressed genes (DEGs) analysis of male vs. female antennae, we found that 32 ORs, 9 GRs, and 4 IRs were DEGs. This study provides a foundation for further research on the chemosensory gene characteristics of P. operculella and P. absoluta .

Identification of chemosensory receptor genes

Candidate odorant receptors.

Genome analysis of P. operculella led to the identification of 93 OR genes containing one co-receptor PopeORco with 92 odorant receptors named PopeOR1 to PopeOR92. Through the combined analysis of the antennal transcriptome and genome, the ORs of the potato tuber moth were well annotated. The 93 odorant receptor genes we identified. Based on transcriptome information and comparative analysis with homologous receptor genes, 75 PopeORs have predicted full-length sequences, with the possibility of having 3–8 transmembrane helical domains. Using similar methods, we annotated 72 odorant receptor genes from the genome of P. absoluta through the homology annotation pipeline. These genes include one PabsORco gene and 71 odorant receptor genes named PabsOR71 ~ PabsOR72 (Additional file 2: Table S2).

We performed an approximate maximum likelihood phylogenetic analysis of the odorant receptors (ORs) identified in P. operculella and P. absoluta , along with other publicly available ORs from Lepidopteran species. We observed that 24 PopeORs (PopeOR18 ~ 22, PopeOR24 ~ 25, PopeOR30, PopeOR39, PopeOR55 ~ 62, PopeOR78 ~ 80, and PopeOR85 ~ 86, PopeOR91 ~ 92,) and 7 PabsORs (PabsOR8 ~ 13, PabsOR18) cluster together with the Lepidopteran pheromone receptors (PRs) clade (Table  1 , Fig.  1 ). Additionally, we found that PopeORs and PabsORs have a greater number of OR orthologs. Furthermore, they each exhibit at least one species-specific branch, indicating their distinct evolutionary trajectory (Fig.  1 ).

The phylogenetic tree of odorant receptors in Lepidoptera species. The gray dots denote > 70% bootstrap support values. Shaded colors indicate different kinds of ORs: Yellow (ORco clade), and light blue (PR clade). Asterisks represent DEGs in antennae, black asterisks indicate higher expression in females, while blue asterisks indicate differential expression in males

Candidate gustatory receptors

A total of 206 gustatory receptors (GRs) were identified from the genome of P. operculella , 194 of which have full-length ORFs ranging from 227 to 580 aa in length. Twelve of these 206 GR sequences are partial sequences. Transmembrane domain (TMD) prediction indicates that these full-length PopeGR genes have 4–9 TMDs (Additional file 2: Table S2). A total of 122 GRs were annotated from the genome of P. absoluta , and all had intact ORFs encoding protein lengths from 209 to 652 aa which have 4 ~ 9 TMDs. For the nomenclature of PopeGRs and PabsGRs , we numbered the genes according to their position information on chromosomes. All details about gene information and the structure of gustatory receptor genes are shown in Additional file 2: Table S2.

A phylogenetic analysis was performed by combining the gustatory receptor sequences from of P. operculella , P. absoluta , Bombyx mori , 69 sequences from Plutella xylostella , 45 sequences from Manduca sexta , and Heliconius melpomene. The ML tree showed that: 11 PopeGRs (PopeGR173 ~ 183) and 12 PabsGRs (PabsGR043 ~ 54) clustered to sugar receptors, 12 PopeGRs (PopeGR125 ~ 126) and 7 PabsGRs (PabsGR62 ~ 68) clustered with the fructose receptor, 4 PopeGRs (PopeGR001, PopeGR042, PopeGR104, and PopeGR107) and 4 PabsGRs (PabsGR002, PabsGR011, PabsGR016, and PabsGR026) clustered with the carbon dioxide receptors, and PopeGRs and PabsGRs clustered with the bitter receptor’s clade (Table  1 , Fig.  2 ).

The phylogenetic tree of gustatory receptors in Lepidoptera species. The gray dots denote > 70% bootstrap support values. The shaded colours indicate different types of GRs. Asterisks represent DEGs in antennae, black asterisks indicate higher expression in females, while blue asterisks indicate differential expression in males

Candidate ionotropic receptors

Overall, we have provided comprehensive descriptions of 50 and 46 IR genes in P. operculella and P. absoluta , respectively, through our annotations (Additional file 2: Table S2). The IR gene structure of P. operculella consisted of 1 to 20 exons, with 26 genes having no introns among the 50 IR genes. Eight genes had a higher number of introns (≥ 14). The average length of these PopeIRs was 659 amino acids (aa), and the length of individual gene models ranged from 389 to 1063 aa (Additional file 2: Table S2). We did not find any evidence of pseudogene or alternative splicing from the P. operculella genome and transcriptome data. All the annotated PopeIRs were full-length. The IR gene structure of P. absoluta consisted of 1 to 19 exons, with 23 genes having no introns among the 46 IR genes. Six genes had a higher number of introns (≥ 14). The average length of these PabsIRs was 649 aa, and the length of individual gene models ranged from 391 to 1000 aa (Additional file 2: Table S2). From the Pabs genome, we found that PabsIR93a.1 might be a pseudogene, while the remaining 45 PabsIR genes had complete ORFs (Additional file 2: Table S2).

Phylogenetic analysis and ionotropic receptors from Drosophila melanogaster [ 29 ] and three Lepidoptera species, including H. melpomene [ 30 , 31 , 32 ], B. mori [ 30 , 31 , 33 ], and S. litura [ 34 , 35 , 36 ]. The phylogenetic results showed that P. operculella and P. absoluta have conserved co-receptors IR8a, IR25a, IR76b, and IR93a; In P. operculella , 16 candidate PopeIRs were clustered with the “antennal IRs” clade, including PopeIR31a.1/2, PopeIR75p.1/2/3, PopeIR75q.1/2/3, PopeIR75d.1/2, PopeIR21a, PopeIR68a, PopeIR40a, PopeIR60a, PopeIR64a, PopeIR41a, while 25 PopeIRs (PopeIR100c ~ r, PopeIR7d.1/2a/2b/3/4, PopeIR85a, and PopeIR143.1/2/3) belong to the "divergent IRs" family (Fig.  3 ). The PopeIR1.1/2, PopeIR2, PopeIR100a, and PopeIR87a belong to "Lepidopteran-specific IRs ". In contrast, for P. absoluta , 22 PabsIRs were found to belong to the D-IRs branch, including PabsIR100c ~ q, PabsIR143.1/2, PabsIR85a, and PabsIR7d.1 ~ 4. Five PabsIRs (PabsIR1.1, PabsIR1.2, PabsIR100a, PabsIR2, and PabsIR87a) were classified as LS-IRs. Additionally, 15 PabsIRs (PabsIR21a, PabsIR31a.1/2, PabsIR40a, PabsIR41a.1, PabsIR60a, PabsIR64a, PabsIR68a, PabsIR75d, PabsIR75p.1/2/3, PabsIR75q.1/2/3) belong to the antennal IR clade (Fig.  3 ).

The phylogenetic relationships of ionotropic receptors between Lepidoptera and Diptera species. Gray dots denote > 70% bootstrap support values. Shaded colours indicate different types of IR genes: Divergent IRs (D-IRs clade), Antennal IRs (A-IRs clade), Lepidoptera-specific IRs (LS-IRs clade), Co-Receptor IR genes (IR25a/8a, andIR76b//93a clade)

Chromosomal distribution map of GRs

The gustatory receptor (GRs) genes of P. operculella were mapped on the chromosomes. The number of chromosomes in P. operculella was 29, and the 206 identified GR sequences were distributed on 23 different chromosomes and 8 scaffolds, which include chromosomes 1, 2, 3, 4, 6, 7, 8, 9, 10, 11, 13, 14, 15, 16, 18, 19, 20, 21, 22, 23, 24, 25, 27, Scaffold00199, Scaffold00287, Scaffold00338, Scaffold00340, Scaffold00365, Scaffold00394, Scaffold00437, Scaffold00625 (Fig.  4 and Additional file 2: Table S2).

Chromosomal distribution map of PopeGR genes. The sugar receptors are marked in blue, fructose receptor is marked in red, and carbon dioxide receptors are marked in magenta

Overall, the distribution of GR genes in the genome of P. operculella is relatively discrete. The number of GR genes on chromosomes 3, 13 and 20 is significantly higher than on other chromosomes, and there is a taste receptor expansion phenomenon on these chromosomes, which is speculated to be produced by large-scale replication of genes. The distribution of sugar receptors in P. operculella is relatively concentrated: all are located on Chromosome 24. Fructose receptors are located on chromosome 20. PTM carbon dioxide receptor distribution is relatively scattered, with four carbon dioxide receptors distributed on chromosomes 1, 2, 14 and 15. The bitter taste receptor in the genome of P. operculella is also relatively scattered. There is a large-scale amplification phenomenon of bitter receptors on chromosomes 13 and 20, which corresponds to the results of systematic evolution analysis (Figs.  2 and  4 ).

The 122 identified gustatory receptor (GRs) genes of P. absoluta were mapped on chromosomes, and it was found that PabsGRs were distributed on the following 20 chromosomes: 1, 2, 3, 4, 6, 7, 8, 9, 10, 11, 12, 14, 15, 16, 17, 19, 20, 21, 22, and 23 (Fig.  5 and Additional file 2: Table S2). Overall, the distribution of GR genes in the genome of P. absoluta is also relatively discrete. Among them, the number of GR genes on chromosomes 2, 3, 8 and 21 is significantly higher than on other chromosomes, and there is also an expansion of taste receptors on these chromosomes. The distribution of sugar receptors in P. absoluta is also relatively concentrated, but unlike P. operculella , all sugar receptors in P. absoluta are located on chromosome 2. However, the fructose receptor of P. absoluta is also located on chromosome 20. The distribution of carbon dioxide receptors in P. absoluta is relatively scattered, with four carbon dioxide receptors distributed on chromosomes 1, 11, 12 and 15 respectively. The bitter taste receptors in P. absoluta are also scattered in the genome, with large-scale amplification of bitter receptors on chromosomes 3 and 8 (Fig.  5 ).

Chromosomal distribution map of PabsGR genes. The sugar receptors are marked in blue, fructose receptor is marked in red, and carbon dioxide receptors are marked in magenta

Analysis of potato tuber moth chemosensory organs transcriptome

We collected and analyzed 11 chemical sensory organs of P. operculella , including larval head, adult female antennae, head, legs, and ovipositor, and adult male antennae and genitalia. Through transcriptome sequencing, we obtained a total of 1425.37 million raw reads. After the adapters and low-quality raw reads were filtered out, we obtained 1410.44 million clean reads. In addition, the average Q30 base percentage after filtering was 93.22% (see Additional file 3: Table S3). When the clean reads were aligned to the reference genome of P. operculella , the average alignment rate (percentage of aligned reads to clean reads) of the samples was 86% (Additional file 4: Table S4). The raw reads were deposited in the National Center for Biotechnology Information (NCBI) Sequence Read Archive (SRA) database with submission number PRJNA1074269. Gene expression levels of all chemosensory receptor genes based on the transcripts per million (TPM) value are represented in Table S5.

The expression level analysis of odorant receptor genes showed that almost all ORs were enriched in the antennae. Only one OR ( PopeOR85 ) was not detected in any tissue. PopeORco displayed the highest expression level in both male and female antennae, but no expression was detected in the legs. Two ORs ( PopeOR33 and PopeOR77 ) were expressed in all tissues, with PopeOR33 highly expressed in the head of mature larvae, and PopeOR77 highly expressed in the adult antennae (Fig.  6 A and Additional file 5: Table S5). The results of OR expression analysis also showed that 53 ORs were detected in the head of larvae, while 88 ORs were detected in the chemosensory tissues of adults. There were 49 ORs expressed throughout the entire larval and adult stages, 4 ORs ( PopeOR3 , PopeOR27 , PopeOR54 , PopeOR85 ) expressed only during the larval period, and 39 ORs expressed only during the adult period (Fig.  6 D and Additional file 5: Table S5). Through DEGs analysis, it was found that 12 PRs ( PopeOR18 - 20 , PopeOR25 , PopeOR30 , PopeOR39 , PopeOR61 - 62 , PopeOR78-80 , PopeOR91 ) had higher expression levels in the antennae of males than females. The remaining 12 PRs had no significant difference in expression levels between the two sexes. Thirteen ORs ( PopeOR15 , PopeOR16 , PopeOR31 , PopeOR37 , PopeOR45 , PopeOR47 , PopeOR67-68 , PopeOR75 , PopeOR84 , PopeOR87 - 88 , PopeOR90 ) had significantly higher expression levels in female antennae than males (Fig.  6 A and Additional file 6: Table S6).

Analysis of expression patterns of chemosensory receptor genes in Phthorimaea operculella . All expression values are represented as normalized TPM (Log10 (TPM + 0.001)), and the colour represents the expression level, with red representing high expression and dark green representing low expression. A Heat map of expression levels of odorant receptor genes in P. operculella ; B ) Heat map of expression levels of ionotropic receptor genes in P. operculella ; C ) Phylogenetic tree and heat map of gustatory receptor genes in P. operculella , with bootstrap values shown as numbers in the figure, using IQ-Tree, with 1000 bootstraps for tree construction; D ) Expression information of ORs in adult and larval stages; E ) Expression information of IRs in adult and larval stages; F Expression information of GRs in adult and larval stages: The abbreviations and names of each tissue are as follows: L1: first-instar larvae, L2H: second-instar larvae heads, L3H: third-instar larvae heads, L4H: fourth-instar larvae heads, LL4H: mature larvae heads, FAn: female adult antennae, Man: male adult antennae, FHe: female adult heads, FFo: female adult legs, FOv: female adult ovipositors, MGl: male adult reproductive organs

The expression analysis of ionotropic receptor genes showed that the main antennal IRs were enriched in the antennae, while the expression levels of divergent IRs, which are specific to Lepidoptera, did not show obvious tissue specificity. Interestingly, we found that some antennal IRs, including the PopeIR25a/76b clade, PopeIR75d clade, PopeIR64a clade, and divergent IRs (PopeIR7d.3), had high expression levels in all tissues (Fig.  6 B and Additional file 5: Table S5). The results of IR expression analysis also showed that 47 IRs were detected in the head of larvae, while 46 IRs were detected in the chemosensory tissues of adults. All IRs were expressed throughout the entire larval and adult stages, while 4 IRs expressed only during the larval period and 3 IRs expressed only during the adult period (Fig.  6 E and Additional file 5: Table S5). Six A-IRs (PopeIR75p.2, PopeIR31a.1, PopeIR31a.2, PopeIR75q.2, PopeIR60a) and three LS-IRs (PopeIR1.1, PopeIR1.2, PopeIR87a) were mainly expressed in adult tissues. Two LS-IRs (PopeIR100a PopeIR2) and seven D-IRs (PopeIR100g, PopeIR100n, PopeIR100m, PopeIR100r, PopeIR143.2, PopeIR100k, PopeIR7d.2b) were mainly expressed in larval tissues (Fig.  6 B). The analysis of DEGs in male and female antennae showed that four A-IRs (PopeIR40a, PopeIR75d.2, PopeIR75p.1, PopeIR75p.2) had significantly higher expression levels in female antennae than in male antennae (Table S6).

The results of GRs expression analysis also showed that 148 GRs were detected in the head of larvae, while 152 GRs were detected in the chemosensory tissues of adults. There were 182 GRs expressed throughout the entire larval and adult stages, 30 GRs expressed only during the larval period, and 34 GRs expressed only during the adult period (Fig.  6 C and F). Among these GRs, four carbon dioxide receptors in potato tuber moth were expressed in adult and larval tissues, of which PopeGR107 was only detected in the antennae of female adults and the heads of L1 ~ 4 larvae, while PopeGR042 was mainly expressed in adult tissues than in larvae. All sugar receptors had higher expression levels in adult tissues than in larvae. The sugar receptor PopeGR182 had higher expression levels in the heads of 1st instar larvae, 3rd instar larvae and female adults. The fructose receptor PopeGR127 was expressed in various tissues, with higher expression levels in the antennae of the adult and female heads (Fig.  6 C). The expression analysis of these bitter gustatory receptors revealed that four bitter taste receptors (PopeGR022, PopeGR024, PopeGE156, PopeGR161) had high expression levels in all tissues (Fig.  6 C). From Fig.  6 C, the constructing an evolutionary tree of 206 PopeGRs and labelling their expression information shows these bitter receptors cluster on one branch of the evolutionary tree and have similar expression patterns, such as the bitter taste receptor PopeGR015 ~ PopeGR019 branch all being highly expressed in adult tissues.

The analysis of DEGs in male and female antennae revealed distinct patterns. Female adults exhibited significantly higher expression levels of four sugar receptors PopeGRs (PopeGR173–175, PopeGR181) and fructose receptor PopeGR127 in their antennae compared to male adults. On the other hand, the sugar receptor PopeGR177 had significantly higher expression levels in the antennae of male adults compared to female adults. Additionally, among the bitter taste receptors, PopeGR027, PopeGR102 and PopeGR111 exhibited significantly higher expression levels in the antennae of female adults compared to male adults (Fig.  6 C and Table S6).

The development of sequencing technology has made it possible to study the size and evolutionary relationships of chemosensory gene families of different species [ 1 , 37 ], providing a good reference to annotate and study the evolution of chemosensory genes in two Phthorimaea pests. In this study, we conducted genome-based identification of chemosensory receptor genes in P. operculella and P. absoluta . Our objective was to investigate the numbers, types, and evolutionary relationships of chemosensory receptor-related genes in two closely related Phthorimaea pests with similar habits and evolutionary relationships. By manually annotating the genomes of these two insect species, we identified 349 (93 PopeORs , 206 PopeGRs , 50 PopeIRs ) and 240 (72 PabsORs , 122 PabsGRs , 46 PabsIRs ) candidate chemosensory receptor genes from the genomes of P. operculella and P. absoluta , respectively. These data allow exploration of the molecular mechanisms underlying their mutual adaptation and competition. Furthermore, we hope that this study will lay the foundation for further research in their chemical ecology and the development of environmentally friendly pest control techniques based on insect olfaction.

A complete annotation of odorant receptors in two Phthorimaea pests provides insights for inter-specific competition and host selection

Researchers have found that insect ORs are a highly variable family of receptor genes by comparing the sequences of various insect ORs. A total of 79 different ORs were discovered in the genome of Anopheles gambiae [ 38 , 39 ]. By comparing the OR families of D. melanogaster and A. gambiae , it was found that although both belong to Diptera, their OR sequences differ greatly, and there is gene expansion to varying degrees in each OR subfamily (Fig.  7 ) [ 39 ]. Some insects with complex environments, such as the red wood ant Pogonomyrmex barbatus , have up to 345 ORs. However, an exception was found in Tribolium castaneum , a storage pest that can complete its entire life cycle within a limited food range. Despite this, it has 245 ORs, suggesting that its environment may be relatively complex, and adults rely on a well-developed olfactory system to locate food resources [ 40 , 41 ]. These findings reflect that the number and sequence of ORs are generally adapted to the ecological needs of each species. Research on the number and phylogenetic analysis of insect ORs can provide valuable information on the evolution and functional differentiation of insect ORs [ 42 ]. From the number of ORs in P. operculella and P. absoluta , it can be seen that P. operculella (93 ORs) has a larger number of odorant receptor genes compared to B. mori (71 ORs) [ 30 , 33 ], H. melpomene (70 ORs) [ 30 ], and P. absoluta (72 ORs), and is comparable to the number of genes in P. xylostella (95 ORs ) [ 43 ]. Evolutionary analysis of these ORs revealed that the pheromone receptor branches in these lepidopteran insects are relatively conserved and clustered together, which is consistent with previous studies [ 44 ]. Among them, the PR branch of P. operculella showed species-specific expansion with a total of 24 branches, and the bootstrap values for these branches were all above 70%. Similar results were reported in P. xylostella , where Engsontia et al . identified many species-specific branch expansions in the PR. However, due to the lack of functional evidence, these branches were temporarily classified as putative PR branches [ 43 ]. For consideration for classification as candidate pheromone receptors, at least one of them should exhibit male-specific expression associated with hairy sensilla, according to the idea proposed by Koenig et al. [ 45 ]. Therefore, in this study, these ORs are also temporarily classified as PR branches, and further functional studies are needed to analyze the expression and functional characteristics of these putative PRs. However, in P. absoluta , we only identified seven PRs and uncovered evidence of a close evolutionary relationship between the two species in terms of PRs. In addition, the large number of expanded branches in PopePRs suggests that there are also large differences in the recognition of sex pheromone components between the two species. For example, Chang et al. studied the PRs of two Helicoverpa species and found that functional studies of the PRs of two closely related moths, Helicoverpa armigera and H. assulta , revealed that homologous PRs have maintained functional consistency during the evolutionary process, although most of the similar receptors have maintained functional consistency, however, there is also the possibility that species divergence events may have caused certain PR direct homologs to produce functional consistency [ 46 ].

Insect chemosensory receptors gene family statistics. The numbers indicate genes and numbers in parentheses indicate pseudogenes. ORs indicate olfactory receptors, GR indicates gustatory receptors, and IRs indicate ionotropic receptors

Through expression profile analysis of these PopePRs, we found that not all the predicted PRs exhibited male-biased expression in the male moths of the potato tuber moth, with only 12 PRs showing male-specific or highly expressed patterns. This indicates that these PRs may be involved in male perception of female sex pheromones. Other PRs did not show significant expression preferences. The study by Wan et al. on the codling moth demonstrated that the sex pheromone receptor branch of CpomOR3a and CpomOR3b exhibited female-biased expression, and these PRs were not only involved in sex pheromone perception but also the perception of host plant volatiles [ 47 ]. Therefore, it can be speculated that the function of these PopePRs is that they do not exhibit clear male-biased expression preferences. In addition to participating in the perception of sex pheromones, these PRs may also be involved in the perception of other chemical cues from sources such as host plant volatiles. In addition, in B. mori , studies have found that BmorOR19, BmorOR45, and BmorOR47 are receptors that show female-biased expression. They respond to aromatic volatile compounds such as linalool, benzoic acid, and benzaldehyde. It has been suggested that these receptors may be involved in regulating oviposition behaviour or detecting male sex pheromones [ 48 ]. According to DEGs analysis, we found 13 PopeORs that showed significantly higher expression levels in female antennae. It is speculated that these PopeORs may be involved in the oviposition behaviour of females. PopeOR77 is highly expressed throughout the growth and development stages. Interestingly, PopeOR77 and BmorOR66 cluster together on the same branch. BmorOR56 has a similar expression pattern in the silkworm and is highly sensitive to cis-jasmone and is involved in the chemo-attraction response to cis-jasmone [ 33 ]. This suggests that PopeOR77 in P. absoluta is likely to have similar biological functions as BmorOR77 in the silkworm.

The extensive expansion and expression pattern analysis of bitter taste receptors provide new insights into the mechanisms of host adaptation in oligophagous insect species

Insect GRs can detect non-volatile compounds in the environment through contact chemosensation of amino acids, sugars, bitter substances, and some plant secondary metabolites. Each species has a unique number of GRs. Engsontia et al. suggested that the expansion of Gr genes is mainly due to extensive gene duplications and relatively few gene losses [ 43 ]. In addition, it has been shown that the total number of GRs may be closely related to species behaviour and their ecological adaptation. For example, in model species such as fruit flies and mosquitoes ( D. melanogaster and Anopheles gambiae ), 60 and 76 Gr genes have been identified, respectively. In a human parasitic louse Pediculus humanus, only 6 GR genes were found, indicating a correlation between the low number of GRs and the simple environment needed for this insect to survive [ 49 ]. Helicoverpa armigera is currently reported to have the highest number of gustatory receptors, with 213 GRs identified (Fig.  7 ) [ 50 ]. In some lepidopteran species with narrower host range, such as B. mori , 76 GRs have been identified [ 51 ], while D. plexippus has 64 GRs [ 32 , 52 ], Heliconius melpomene has 70 GRs [ 30 ], and P. xylostella has 69 GRs [ 43 ]. Among these four species, the silkworm feeds exclusively on mulberry leaves [ 48 , 53 ], D. plexippus feeds only on plants of the Asclepiadaceae family [ 52 ], the Heliconius melpomene feeds exclusively on Passiflora oerstedii or P. menispermifolia [ 30 ], and P. xylostella only feeds on plants of the Brassicaceae family [ 54 ]. Therefore, the expansion of 213 GRs in the cotton bollworm may be related to its feeding habits, as the extensive expansion of GR branches may enhance its ability to perceive a wide range of host plant metabolites, facilitating its survival on various host species [ 50 ]. In our study, we found an interesting phenomenon: the number of GRs identified in the specialist herbivore P. operculella is much higher than those in the generalist herbivore P. absoluta . Phylogenetic analysis of their GRs revealed no significant differences in the number of carbon dioxide receptors, sugar receptors, and two types of gustatory receptors. Furthermore, through expression studies, it has been found that the differential expression of taste receptor genes on the antennae of the potato tuber moth is mainly related to sugar receptors and fructose receptors. It is speculated that this may be associated with the adult insects' need for increased sugar perception to supplement the energy required for mating, oviposition, and flight, especially in females. Interestingly, we observed that more than half of the female moths showed a preference for the expression of genes enriched in sugar receptors. In our analysis of fructose receptor expression in the potato tuber moth, we found that the PopeGR127 fructose receptor gene is expressed to varying degrees in chemosensory tissues at different developmental stages. Other putative fructose receptors are predominantly expressed in the heads of larvae, suggesting their possible involvement in regulating feeding-related behaviours. Further research is needed to investigate the expression and functional characteristics of these sugar receptors in the gut and other tissues. In addition, there is substantial evidence of expansion in the fructose receptor branch of the potato tuber moth, a conserved class of GRs found in almost all insects. Studies of fruit flies and cotton bollworms have shown that fructose receptors may function as internal nutrient sensors, playing important roles in regulating feeding behaviour [ 55 , 56 ].

Notably, P. operculella showed a significant expansion in the branches of fructose and bitter receptors. Phthorimaea operculella is a specialized herbivorous lepidopteran insect that exclusively feeds on plants of the Solanaceae family, such as potatoes and eggplants. It is speculated that the specific expansion of bitter taste receptor branches in P. operculella helps it better perceive the various glycoalkaloids commonly present in solanaceous plants [ 57 ], allowing it to select hosts that are beneficial for its survival. The potato tuber moth may adapt to solanaceous hosts by using a large expansion of bitter receptors to selectively feed on suitable hosts or parts of plants. Analysis of DEGs (differentially expressed genes) between the sexes of the potato tuber moth revealed that three bitter taste receptor genes were highly expressed in the female antennae. We speculate that this may be related to the female moth's perception and oviposition behaviour.

Identification of the complete set of ionotropic receptors in two Phthorimaea pests provides crucial insights into their physiological characteristics and management strategies

A total of 50 and 46 IRs were identified from P. operculella and P. absoluta . This is a higher number compared to other lepidopteran species B. mori , and D. plexippus (Fig.  7 ) [ 31 ]. Ionotropic receptor genes were first identified in fruit flies and are divided into A-IRs and D-IRs [ 13 ] based on their expression characteristics and evolutionary relationships. Studies on Lepidoptera have found that insects in the Family Noctuidae have a unique IR branch called LS-IRs [ 58 ]. Subsequent studies on ionotropic receptors in Lepidoptera have found that some LS-IRs are not exclusive to the noctuids, such as IR1 [ 45 ]. Similarly, we also identified the IR1 branch in P. operculella and P. absoluta . Like the silkworm, we did not identify the 100b branch of the LS-IR in P. operculella and P. absoluta , but Zhu et al. identified the IR100b branch in S. litura . By comparing the types of D-IR receptors in P. operculella and P. absoluta , we found that the number of ionotropic receptor genes in both species was the same, and no species-specific IR receptor branches were found. The differences between the two species are mainly due to the fact that the PabsIR100c branch has four additional gene copies (PabsIR100c.1 − 4) located close to each other on the chromosome, suggesting similar physiological functions. However, we did not observe an expansion of the PopeIR100c branch in P. operculella . We found three gene copies on the PopeIR143 branch, while only one gene copy was found on the PabsIR143 branch. The same phenomenon was found in the IR75d and IR7d branches. Analysis of exon and intron structures of these two species’ IR genes revealed that the gene structures of LS-IRs (except for IR1.1 and IR1.2) and D-IRs are relatively simpler than those of conserved A-IRs, showing fewer introns or single exon structures. For example, D-IR subfamilies (except for IR85a) lack introns, while A-IR subfamilies usually have multiple introns, like fruit fly IRs [ 59 ]. Interestingly, we found one intron in two D-IRs of PabsIR (PabsIR100c.1 and PabsIR143.2). Unlike dipterans, the IR85a branch in both species' D-IRs is a single exon gene. In A-IRs, we also found that the IR68 branch is a single exon gene similar to that in Spodoptera litura ; however, the structure of IR68a is more complex and different from that in Spodoptera litura [ 35 ].

Based on the expression profile analysis of ionotropic receptors (IRs) in the chemosensory tissues of P. operculella during developmental stages, we found some interesting expression patterns. For example, IR25a, IR76b, IR8a, IR64a and IR75d were enriched in the antennae of different developmental stages. Previous studies have shown that these receptors may be involved in the olfactory and gustatory perception of acids by various insects [ 60 , 61 , 62 ]. These acids may come from the products of microbial fermentation of sugars [ 63 ]. Therefore, the conserved expression characteristics of these antennal IRs suggest that they play an important role in the perception of acids throughout the entire development of P. operculella . PopeIR7d.4, which belongs to Divergent-IR, also shows a similar expression pattern. However, there is little research on the function of Divergent-IRs in Lepidoptera, and further study is needed to determine the function of this gene. The expression pattern analysis of other D-IRs also suggests that these IRs are not enriched in adult antennae, and some are only detected in the heads of larvae, suggesting that they may be related to feeding and olfaction functions. For example, D-IRs involved in the taste perception of some fatty acids have been found in fruit flies [ 64 ]. Further research is needed to fully understand the function of D-IRs. Different Pope LS-IRs show various expression patterns. We particularly note that PopeIR100a is expressed not only in the heads of larvae but also in the female antennae of adults, suggesting that it may be related to olfaction function. However, there is limited research on its function and further functional verification is needed. The diverse expression profiles of the potato tuber moth indicate different expression patterns, which may reflect different ecological adaptation strategies and behavioural characteristics. Current research indicates that ionotropic receptor genes in insects have multiple sensory functions, including olfaction, taste, temperature, and humidity perception [ 65 ]. Specifically, IRs play a role in the temperature and humidity perception of pests, for example, IR25a and IR93a are expressed in thermosensory neurons and humidity-sensing neurons in the antennae, participating in temperature and humidity perception [ 15 ]. Furthermore, some IRs, such as IR21a, are essential for temperature-based host-seeking behavior in mosquitoes [ 66 ], while other IRs are involved in the perception of specific chemicals in the environment, such as amino acids and organic acids [ 67 , 68 , 69 ]. Some organic acids provide insects with rich information. For example, the accumulation of large amounts of acids indicates severe food resource corruption, and at the same time, the accumulation of acids is disadvantageous to the survival of insects [ 70 , 71 ]. The perception of acids helps insects assess the suitability of food resources and help them to avoid eating toxic and harmful areas. Our study shows that the homology of the ionotropic receptor gene sequences of these two pests was close, and the specific expression patterns of some ionotropic receptor genes in different tissues and developmental stages reveal that these ionotropic receptors play important roles in olfaction, gustation, and the perception of temperature and humidity. These genes can serve as potential targets for interference with the host plant recognition of these two pests, providing sufficient data support and molecular targets for further research on the development of pest management strategies.

In this study, we investigated the chemosensory receptor-related genes of P. operculella and P. absoluta in terms of their similar habits and evolutionary relationships. In addition, the odorant receptor and ionotropic receptor genes of both insect species were identified, and the close homology of these chemosensory receptor genes revealed similarities in the functions of receptors between the two species. These two types of receptors are mainly involved in olfactory perception, which also suggests the possibility of intense interspecific competition in olfactory behaviour between the two species. Our research demonstrated that the potato tuber moth has more chemosensory receptor genes (349 genes) compared to the tomato leaf miner (240). We discovered extremely large expansions of bitter receptor genes in the P. operculella compared to the P. absoluta , which may be related to the broad adaptation to solanaceous hosts of P. operculella . These research findings lay the foundation for further studies on the chemical ecology of these pests and the development of environmentally friendly pest control technologies based on insect chemosensation.

Sample collection and sequencing

Phthorimaea operculella were collected from potato fields in QuJing, Yunnan Province, China, in 2014. In the laboratory, the rearing conditions in the climate controlled chamber were as follows: temperature, 26 ± 1°C; relative humidity, 60 ± 10%; photoperiod, 12 h light: 12 h dark. The larvae were reared using potatoes and placed together with the adults in nylon cages. The amount of head tissues used for each larval stage were as follows: L1 (whole head larvae, approximately 50 individuals), L2 larvae (approximately 90 heads dissected), L3 larvae (approximately 80 heads dissected), L4 larvae and mature larvae (approximately 50 heads dissected). The antennae (80 pairs of each sex), heads (40 females), legs (40 females), male genitalia (40 males), and female ovipositors (40 females) were separately excised from 2 − 3-day-old adults and immediately frozen in liquid nitrogen and stored at − 70 ℃ until use.

The total RNA of the tissues above was separately extracted using TRIzol reagent (Invitrogen, Carlsbad, CA, USA) following the manufacturer’s instructions. RNA integrity was determined with an Agilent Bioanalyzer 2100 system (Agilent Technologies Inc., CA, USA). RNA concentration and purity were measured by a Nanodrop ND2000 spectrophotometer (NanoDrop Technologies Inc., Wilmington, DE). One microgram of total RNA per sample was used for cDNA library construction. A cDNA library was prepared using the Optimal Dual-mode mRNA Library Prep Kit (BGI, Shenzhen, China) according to the manufacturer's instructions. The library was then sequenced on the BGI MGISEQ-2000 platform (BGI, Shenzhen, China), and paired-end (150 bp) reads were generated.

Identification chemosensory genes

Comparative genomic analysis was conducted between P. operculella and P. absoluta [ 18 , 72 ]. Chemosensory gene sequences were collected from various lepidopteran species with published genome and transcriptome data, including Bombyx mori [ 30 , 31 , 33 ], Plutella xylostella [ 73 ], Chilo suppressalis [ 74 , 75 ], Ostrinia furnacalis [ 74 , 76 ], Helicoverpa armigera [ 50 ], Helicoverpa zea [ 50 ], Galleria mellonella [ 74 , 77 ], Eogystia hippophaecolus [ 78 ], Spodoptera exigua [ 74 , 79 ], Peridroma saucia [ 80 ], Carposina sasakii [ 81 ], Mythimna separata [ 82 , 83 , 84 ], Manduca sexta [ 45 , 85 , 86 ], Loxostege sticticalis [ 87 ], Danaus plexippus [ 31 , 32 , 52 ], Heliconius melpomene [ 30 , 31 , 32 ], and Spodoptera litura [ 34 , 35 , 36 ] (Additional file 1: Table S1). Next, protein sequences were obtained from the National Center for Biotechnology Information ( https://www.ncbi.nlm.nih.gov ) based on published data and manually verified to construct a reliable reference dataset.

Subsequently, a local TBLASTN (v2.14.0) analysis was performed to search candidate chemosensory genes in the genomes of P. operculella and P. absoluta , with an E-value cutoff of e −5 [ 88 ]. Based on the Blast search results, the positional information of different chemosensory genes on chromosomes or scaffolds was manually determined. The genome sequence of these candidate receptor genes was extracted using a Python script, and the coding sequences of chemosensory genes from the genomes of the two species were identified using an online server Genewise ( https://www.ebi.ac.uk/Tools/psa/genewise/ ). Furthermore, after obtaining RNA-seq data of chemosensory tissues in the potato tuber moth, we aligned the clean reads to the reference genome of the potato tuber moth using the HISAT software (v2.10) [ 89 ]. Then, we assembled the aligned reads using StingTie (v1.0.4) to reconstruct transcript information. Based on the transcript information, we corrected the sequences of chemosensory genes annotated from the genome, resulting in nearly complete genes including exon–intron boundaries and their location in the potato tuber month. Furthermore, the conserved domains of these candidate genes were confirmed using the InterPro online server ( https://www.ebi.ac.uk/interpro/search/sequence/) [ 90 ].

Sequence and phylogenetic analysis

We used the ORF prediction component of the TBtools software (v2.034) to predict the open reading frames (ORFs) of chemosensory genes in species P. operculella and P. absoluta [ 91 ]. The transmembrane helical domains (TMDs) of chemosensory genes were predicted using the online server DeepTMHMM ( https://dtu.biolib.com/DeepTMHMM ). TBtools was used to visualize the chromosomal positions of gustatory receptor genes in P. operculella and P. absoluta [ 91 ].

All chemosensory gene sequence alignments were performed by the MAFFT software (v7.490). Then, we used ModelFinder to find the best amino acid substitution model for phylogenetic analysis. The phylogenetic trees for chemosensory genes were constructed using IQ-Tree software v.2.0.7) based on the best amino acid substitution model, with 1000 bootstraps. We used the OR dataset, including sequences from Bombyx mori [ 33 ], Ostrinia furnacalis [ 76 ], Manduca sexta [ 45 ], and Heliconius melpomene [ 30 ]. The GR phylogenetic trees included sequences from Bombyx mori [ 51 ], Plutella xylostella [ 43 ], Manduca sexta , and 73 from Heliconius melpomene [ 32 ]. The IR dataset included sequences from Drosophila melanogaster [ 29 ], Heliconius melpomene [ 31 ], Bombyx mori [ 31 ], and Spodoptera litura [ 35 ]. The sequences resource of each species was collected from genome or transcriptome data (see Additional file 1: Table S1 ). The ML tree was visualized using iTOL online tools (v. 5) [ 92 ].

P. operculella ’s chemosensory genes expression analysis

We conducted a study on the developmental stages and tissue expression profiles of chemosensory genes in the potato tuber moth. The raw reads were processed using SOAPnuke software (v1.6.5) to eliminate unknown (poly N) or low-quality and adaptor sequences, resulting in clean data. Quality metrics, including Q20, Q30, and GC-content levels, were calculated for the clean data. All subsequent analyses were performed using high-quality clean data. Subsequently, the clean reads were aligned to the reference genome using STAR (2.7.10b) [ 93 ]. Furthermore, we employed RSEM to calculate the gene expression levels in each tissue [ 94 ]. Finally, the expression levels of the chemosensory genes were visualized using the pHeatmap package (v1.0.12) in R (v4.1.2). For the differentially expressed gene (DEG) analysis, we used the R package DEseq2 to analyze the number of differentially expressed chemosensory genes between female and male antennae [ 95 ]. We set | Log2 (FoldChange) |> 1, FDR < 0.05 as the threshold for screening differentially expressed genes.

Availability of data and materials

No datasets were generated or analysed during the current study.

Abbreviations

Odorant receptors

Gustatory receptors

Ionotropic receptors

G protein-coupled receptor

Carbon dioxide

Olfactory sensory neurons

Gustatory receptor neurons

Odorant-binding proteins

Differential expressed genes

Transmembrane domain

Pheromone receptor

Divergent IRs

Lepidopteran-specific IRs

Antennal IRs

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Acknowledgements

We thank Dr. RunMao Lin for providing the additional genome information for the P. operculella in this study.

This work was supported by the National Natural Science Foundation of China (grants 32372535) and the Science and Technology Innovation Project of the Chinese Academy of Agricultural Sciences.

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State Key Laboratory for Biology of Plant Diseases and Insect Pests, Institute of Plant Protection, Chinese Academy of Agricultural Sciences, Beijing, 100193, China

Ruipeng Chen, Junjie Yan & Yulin Gao

A.N. Severtsov Institute of Ecology and Evolution, Russian Academy of Sciences, Moscow, 119071, Russia

Jacob D. Wickham

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Contributions

Conceptualization: Yulin Gao. Formal analysis: Ruipeng Cheng, Junjie Yan. Funding acquisition: Yulin Gao. Investigation: Ruipeng Cheng, Junjie Yan. Supervision: Yulin Gao. Writing – original draft: Ruipeng Cheng, Junjie Yan, Yulin Gao. Writing – review & editing: Jacob D. Wickham, Yulin Gao.

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Correspondence to Yulin Gao .

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We hereby declare that all research involving animal tissues in this study was conducted following relevant ethical guidelines and principles. All necessary ethical approvals were obtained before the commencement of the research. The ethics committee responsible for approving the research is named the ethics committee of the State Key Laboratory for Biology of Plant Diseases and Insect Pests, Institute of Plant Protection, Chinese Academy of Agricultural Sciences, with the approval number SYXK (Beijing) 2008–008. Furthermore, during the animal experimentation process, it was ensured that the subjects were anesthetized and the dissection tools were sterilized. It is our commitment to fully respect and protect the welfare and rights of animals involved in the research. We have made every effort to minimize the number of animals used and to minimize any pain or discomfort caused to them during the experimentation process.

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Supplementary Information

12864_2024_10428_moesm1_esm.docx.

Additional file 1: Table S1. The information of reference chemosensory gene set used in gene annotation from other species.

Additional file 2: Table S2. The detail of identification of chemosensory receptor genes.

Additional file 3: table s3. quality statistics of clean reads., additional file 4: table s4. summary of genome mapping information., additional file 5: table s5 table. chemosensory gene expression data., 12864_2024_10428_moesm6_esm.xlsx.

Additional file 6: Table S6. DEGs information between FAn Vs MAn. Set FoldChang > 2, FDR < 0.05 as threads to filter DEGs.

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Chen, R., Yan, J., Wickham, J.D. et al. Genomic identification and evolutionary analysis of chemosensory receptor gene families in two Phthorimaea pest species: insights into chemical ecology and host adaptation. BMC Genomics 25 , 493 (2024). https://doi.org/10.1186/s12864-024-10428-6

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DOI : https://doi.org/10.1186/s12864-024-10428-6

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• Phthorimaea operculella
• Phthorimaea absoluta
• Chemosensory receptors
• Transcriptome analysis
• Gene expression profiles

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