Principle purpose of this article is to discuss why Pest Analysis is a Good Strategic Tool. Pest analysis – Politics, Economic, Social along with Technological analysis; describes a framework of macro-environmental factors found in the environmental scanning element of strategic management. The Pest analysis enables a company to understand these external factors fully and take advantage of the opportunities that can be found. Furthermore, it helps a company foresee any threats that exist in the surroundings and minimize these individuals accordingly. Pest analysis is a great strategic tool and helps the organization make the right decisions don’t forget the ever transforming external environment that surrounds the organization.