PEST Analysis

• P – Political
• E – Economic
• S – Social (cultural)
• T – Technological

PEST Analysis is a framework of above points (or micro-environmental factors) used for the understanding of  micro-environmental factors which might lead you to do major strategic changes.

You will come across many similar abbreviations for the almost same thing - STEP, PESTEL, PESTLE, PESTE, PESTLIED, SLEPT, STEEPLE, STEEPLED, LE PEST C or LEPEST

More readings here:

• http://www.mindtools.com/pages/article/newTMC_09.htm
• http://www.coursework4you.co.uk/essays-and-dissertations/pest-analysis.php
• http://www.quickmba.com/strategy/pest/
• http://en.wikipedia.org/wiki/PEST_analysis

Have a look at SWOT Analysis also.