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.
Overall economic situation
Consumer spending
Ease of access to loans
Interest rates, inflation Unemployment
Taxation policies and trends
Exchange rates
Criteria Examples:
Lifestyle patterns and changes.
Social mobility.
Media views and perceptions.
Ethnic and religious differences.
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.
Industrial pollution.
Recycling considerations.
Attitudes to the environment, from the government, media and consumers.
Current and future environmental change.

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