PESTEL Analysis


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The big picture:

PESTEL Analysis is a simplified and vital as well as widely used tool that helps you understand the big picture of the Political, Economic, Socio-Cultural and Technological, Environment and Legal framework in which the business is operating in. PESTEL a well-known model used in establishing the vision of the future...

When to use it:

In the business world, there are many factors in the macro-environment that will effect the decisions of an organisation. Hence, by employing the PESTEL framework, many different factors in a firm's macro environment may be analysed and comprehensively understood...

How to Use the Tool

The important point is to move from the second step to the third step: it is sterile just to describe factors without thinking through what they mean. However, be careful not to assume that your analysis is perfect: use it as a starting point, and test your conclusions against the reality you experience. The following prompts may help as a starting point for brainstorming...



PESTEL Analysis Template
Criteria Examples:
Taxation policy.
Political support.
Grants, funding.
Trade bodies.
Effect of wars.
POLITICALECONOMICCriteria Examples:
Overall economic situation
Consumer spending
Ease of access to loans
Interest rates, inflation Unemployment
Taxation policies and trends
Exchange rates
Criteria Examples:
Demographics.
Lifestyle patterns and changes.
Attitudes.
Values.
Social mobility.
Media views and perceptions.
Ethnic and religious differences.
SOCIOLOGICALTECHNOLOGICALCriteria Examples:
Future technology innovations.
Research funding.
Increase in online usage.
Intellectual property rights.
Copyright infringements.
Global communication.
Criteria Examples:
Legislation in employment.
Competition and health and safety.
Future legislation changes.
Changes in European laws.
Trading policies.
Regulatory bodies.
LEGALENVIRONMENTALCriteria Examples:
Industrial pollution.
Recycling considerations.
Attitudes to the environment, from the government, media and consumers.
Current and future environmental change.


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