The Innovation of the PEST Analysis Model in Public Sector Strategy Formulation

Abstract

Given that current informatization has gradually penetrated all aspects of, the factors that the public sector needs to consider in the process of strategy formulation are increasingly complex and changeable. In particular, when major and long-term strategies need to be formulated, the PEST analysis, as a path model to provide effective analysis for strategy formulation, needs to keep pace with the times, improve its analysis system, and guarantee better strategy formulation. The purpose of this study, is to improve the PEST analysis model for the public sector. Before a strategy is formulated, a pre-action evaluation is carried out, and using the evaluation results, the PEST analysis model is used to analyze the environment of the strategy. After the results of the strategy formulation are released, an after-event assessment is conducted to correct the biases between the strategy’s aims and the actual result, which will help the public sector to be more rigorous in devising major and long-term strategies.