Organisations carry out a PEST analysis to assess the external factors that can have an influence on their internal operations. This is particularly prevalent for organisations such as the Legal Services Commission, which gives legal aid to people with work or social related issues. Without the government providing funds for this aid, the Commission would not exist. Other external factors such as a change in laws or the economy can also affect how it carries out its work.

The LSC chooses to analyse its external environment as part of its overall plan. External factors affect people in all types of situations. It can be difficult to imagine that a will could be subject to external influences even though it sets out your personal wishes. Nevertheless, following the recent death of Michael Jackson, his will is causing a conflict of interest. Jackson chose two non-family members to manage his wishes for his estate and the guardianship of his children. However, lawyers of the Jackson family have already applied for control of his estate. Contesting the will could mean the matter is settled in the superior court. (The Times, 2nd July 2009)

Some external factors can have more of an impact than others at any one time whether it is business or personal. The key message is to balance the factors and assess the level of risks from each of the PEST areas.