The PESTLE acronym stands for Political, Economic, Social, Technological, Legal and Environmental factors.
PESTLE framework is a tool to analyse and monitor the macro-environmental factors that have an impact on a company and the industry environment in which it operates.
A PESTLE analysis is often used with other tools such as the SWOT analysis to give a clear understanding of internal and external factors affecting a business.
Create your own PESTLE analysis by consulting a variety of sources in order to learn as much as possible about a company and the industry environment in which it operates.
To what degree does the government intervene in the economy? The political environment can affect a company or industry through a range of factors, including:
Economic factors have an impact on how business is conducted within a country and can include:
Also referred to as socio-cultural factors. These factors include:
Technological innovations may affect the operations of an industry and have either a positive or negative affect on the market. Technological factors can include:
The legal and regulatory environment can affect the policies and procedures of an industry, and can control employment, safety and regulations. Common legal factors that companies focus on include:
Environmental or ecological factors that can impact an industry include: