{"id":8776,"date":"2012-03-27T23:59:40","date_gmt":"2012-03-27T12:59:40","guid":{"rendered":"https:\/\/stage.creately.com\/blog\/?p=8776"},"modified":"2017-08-17T19:43:21","modified_gmt":"2017-08-17T08:43:21","slug":"swot-analysis-vs-pest-analysis","status":"publish","type":"post","link":"https:\/\/stage.creately.com\/blog\/diagrams\/swot-analysis-vs-pest-analysis\/","title":{"rendered":"SWOT Analysis Vs PEST Analysis and When to Use Them"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div><p>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 vs PEST analysis.<\/p>\n<h3>What is SWOT Analysis?<\/h3>\n<p>SWOT, when broken down simply means analyzing the:<\/p>\n<ul>\n<li>Strengths \u2013 The advantages you have over the competition concerning this project.<\/li>\n<li>Weaknesses \u2013 The disadvantages you have internally compared with your competitors.<\/li>\n<li>Opportunities \u2013 Current external trends which are waiting to be taken advantage of.<\/li>\n<li>Threats \u2013 External movements which may cause a problem and have a negative impact on your business.<\/li>\n<\/ul>\n<p>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.<\/p>\n<p>You can easily <a href=\"https:\/\/stage.creately.com\/SWOT-Analysis-Software?utm_source=swotpest&amp;utm_medium=blog&amp;utm_campaign=tutorialposts\">create SWOT diagrams<\/a> using our diagramming tool. Or you can use our SWOT analysis templates to get started instantly.<\/p>\n<p style=\"font-size: 20px; text-align: center;\"><a title=\"SWOT analysis templates\" href=\"https:\/\/stage.creately.com\/blog\/examples\/swot-analysis-templates-creately\/\" target=\"_blank\" rel=\"noopener\">Click here for more SWOT analysis templates by Creately &gt;&gt;<\/a><\/p>\n<div id=\"attachment_13113\" style=\"width: 1125px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/stage.creately.com\/creately-start?tempID=fsie5tgj6&amp;utm_source=swotpest&amp;utm_medium=blog&amp;utm_campaign=tutorialposts\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-13113\" class=\"wp-image-13113 size-full\" src=\"https:\/\/stage.creately.com\/blog\/wp-content\/uploads\/2012\/06\/SWOT-analysis-template-available-at-Creately-1.png\" alt=\"SWOT analysis template available at Creately\" width=\"1115\" height=\"859\" srcset=\"https:\/\/d3w3koqe3hizre.cloudfront.net\/uploads\/2012\/06\/SWOT-analysis-template-available-at-Creately-1.png 1115w, https:\/\/d3w3koqe3hizre.cloudfront.net\/uploads\/2012\/06\/SWOT-analysis-template-available-at-Creately-1-300x231.png 300w, https:\/\/d3w3koqe3hizre.cloudfront.net\/uploads\/2012\/06\/SWOT-analysis-template-available-at-Creately-1-768x592.png 768w, https:\/\/d3w3koqe3hizre.cloudfront.net\/uploads\/2012\/06\/SWOT-analysis-template-available-at-Creately-1-1024x789.png 1024w\" sizes=\"auto, (max-width: 1115px) 100vw, 1115px\" \/><\/a><p id=\"caption-attachment-13113\" class=\"wp-caption-text\">One of many SWOT analysis templates available at Creately ( click to use at template )<\/p><\/div>\n<h3>Using the Information<\/h3>\n<p>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.<\/p>\n<h3>What is PEST Analysis?<\/h3>\n<p>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:<\/p>\n<ul>\n<li>Political \u2013 Laws, global issues,\u00a0legislation\u00a0and regulations which may have an effect on your business either immediately or in the future.<\/li>\n<li>Economic \u2013 Taxes, interest rates, inflation, the stock markets and consumer confidence all need to be taken into account.<\/li>\n<li>Social \u2013 The changes in lifestyle and buying trends, media, major events, ethics, advertising and publicity factors.<\/li>\n<li>Technological \u2013 Innovations, access to technology, licensing and patents, manufacturing, research funding, global communications.<\/li>\n<\/ul>\n<p>Pest can also be known as <strong>PESTLE<\/strong> which includes other factors such as:<\/p>\n<ul>\n<li>Legal \u2013\u00a0Legislation\u00a0which has been proposed and may come into effect and any passed\u00a0legislations.<\/li>\n<li>Environmental \u2013 Environmental issues either locally or globally and their social and political factors.<\/li>\n<\/ul>\n<p>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.<\/p>\n<div id=\"attachment_13061\" style=\"width: 626px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/stage.creately.com\/blog\/wp-content\/uploads\/2012\/03\/PEST-analysis-template-available-at-Creately1.png\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-13061\" class=\" wp-image-13061\" src=\"https:\/\/stage.creately.com\/blog\/wp-content\/uploads\/2012\/03\/PEST-analysis-template-available-at-Creately1.png\" alt=\"PEST analysis template available at Creately\" width=\"616\" height=\"524\" srcset=\"https:\/\/d3w3koqe3hizre.cloudfront.net\/uploads\/2012\/03\/PEST-analysis-template-available-at-Creately1.png 733w, https:\/\/d3w3koqe3hizre.cloudfront.net\/uploads\/2012\/03\/PEST-analysis-template-available-at-Creately1-300x255.png 300w\" sizes=\"auto, (max-width: 616px) 100vw, 616px\" \/><\/a><p id=\"caption-attachment-13061\" class=\"wp-caption-text\">PEST analysis template available at Creately ( click to use as template )<\/p><\/div>\n<p>Related Reading: <a title=\"SWOT analysis vs GAP analysis\" href=\"https:\/\/stage.creately.com\/blog\/diagrams\/swot-analysis-vs-gap-analysis\/\" target=\"_blank\" rel=\"noopener\">SWOT analysis vs GAP analysis<\/a><\/p>\n<h3>Comparing SWOT Analysis Vs PEST Analysis<\/h3>\n<p>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.<\/p>\n<p>The disadvantage of PESTLE analysis is it doesn&#8217;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.<\/p>\n<p>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.<\/p>\n<p>So a better approach would be to <strong>perform an extensive PEST analysis and use that finding in the opportunities and threats section in the SWOT analysis<\/strong>.<\/p>\n<div id=\"attachment_8787\" style=\"width: 598px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/stage.creately.com\/blog\/wp-content\/uploads\/2012\/03\/SWOT-Analysis-vs-PEST-Analysis.png\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-8787\" class=\"size-full wp-image-8787 \" title=\"SWOT Analysis vs PEST Analysis\" src=\"https:\/\/stage.creately.com\/blog\/wp-content\/uploads\/2012\/03\/SWOT-Analysis-vs-PEST-Analysis.png\" alt=\"SWOT analysis vs PEST analysis\" width=\"588\" height=\"399\" srcset=\"https:\/\/d3w3koqe3hizre.cloudfront.net\/uploads\/2012\/03\/SWOT-Analysis-vs-PEST-Analysis.png 588w, https:\/\/d3w3koqe3hizre.cloudfront.net\/uploads\/2012\/03\/SWOT-Analysis-vs-PEST-Analysis-300x203.png 300w\" sizes=\"auto, (max-width: 588px) 100vw, 588px\" \/><\/a><p id=\"caption-attachment-8787\" class=\"wp-caption-text\">It is best practice to do the PEST analysis and include the results in SWOT analysis<\/p><\/div>\n<h3>Working as a Team for the Benefit of a Project<\/h3>\n<p>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\u00a0reduces the possibility of important information being missed.<\/p>\n<p>The results which have been recorded on your Creately SWOT template can then be used to <a title=\"Plan project using Creately's simple Gantt chart software\" href=\"https:\/\/stage.creately.com\/blog\/announcements\/draw-gantt-charts-online-using-creately\/\" target=\"_blank\" rel=\"noopener\">plan a project carefully<\/a> 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.<\/p>\n<p>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.<\/p>\n<h3>References<\/h3>\n<p><a href=\"http:\/\/www.jiscinfonet.ac.uk\/tools\/pestle-swot\" target=\"_blank\" rel=\"noopener\">Pestle and Swot Analysis<\/a> [Accessed 23\/02\/12]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>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&#8230;<span class=\"continue-reading\"> <a href=\"https:\/\/stage.creately.com\/blog\/diagrams\/swot-analysis-vs-pest-analysis\/\">Read More<\/a><\/span><\/p>\n","protected":false},"author":15,"featured_media":8787,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[240,242,244,243,239,241],"class_list":["post-8776","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-diagrams","tag-pest","tag-pest-analysis","tag-pestle","tag-slot","tag-swot","tag-swot-analysis"],"_links":{"self":[{"href":"https:\/\/stage.creately.com\/blog\/wp-json\/wp\/v2\/posts\/8776","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stage.creately.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stage.creately.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stage.creately.com\/blog\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/stage.creately.com\/blog\/wp-json\/wp\/v2\/comments?post=8776"}],"version-history":[{"count":24,"href":"https:\/\/stage.creately.com\/blog\/wp-json\/wp\/v2\/posts\/8776\/revisions"}],"predecessor-version":[{"id":14737,"href":"https:\/\/stage.creately.com\/blog\/wp-json\/wp\/v2\/posts\/8776\/revisions\/14737"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stage.creately.com\/blog\/wp-json\/wp\/v2\/media\/8787"}],"wp:attachment":[{"href":"https:\/\/stage.creately.com\/blog\/wp-json\/wp\/v2\/media?parent=8776"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stage.creately.com\/blog\/wp-json\/wp\/v2\/categories?post=8776"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stage.creately.com\/blog\/wp-json\/wp\/v2\/tags?post=8776"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}