PESTLE explained
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.
How do I find PESTLE resources?
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:
- government policy
- political stability or instability in overseas markets
- trade tariffs and taxation
- Business source premier via EBSCO This link opens in a new windowProvides full-text access to a broad range of scholarly business journals, country economic reports, and detailed company profiles. Virtually all subject areas related to business are covered, including access to the Harvard Business Review.
- MarketLine advantage This link opens in a new windowProvides in-depth PESTLE insights as part of their country Macroeconomic Outlook Reports. Covers over 50 different countries, as well as company and industry profiles. The search box is set to “All Research” by default. Change this to ‘country & risk reports’ and then type in the country you are researching.
Economic factors have an impact on how business is conducted within a country and can include:
- economic growth patterns
- unemployment rates
- interest rates
- OECD publications This link opens in a new windowProvides economic information for all member countries, and contains reports and statistical data.
- IBISWorld (Australian content) This link opens in a new windowProvides access to Australian industry reports. Search for industries by keyword(s) or browse a list of industries. Reports include detailed performance data and analysis, supply chain information, forecasts, operating strengths and weaknesses, analysis of external drivers, and industry profit forecasts.
- Productivity CommissionThe Productivity Commission is the Australian Government’s principal review and advisory body on microeconomic policy and regulation. It provides information on current ongoing enquiries, economic news and regulatory reviews.
- MarketLine advantage This link opens in a new windowProvides in-depth PESTLE insights as part of their country Macroeconomic Outlook Reports. Covers over 50 different countries, as well as company and industry profiles. The search box is set to “All Research” by default. Change this to ‘country & risk reports’ and then type in the country you are researching.
Also referred to as socio-cultural factors. These factors include:
- population demographics (e.g. aging population)
- changes in lifestyles and trends
- consumer buying patterns
- Passport GMID (Global market information database) This link opens in a new windowProvides market intelligence on industries, consumers and countries. The Economies tab at the top of the Passport homepage provides background information on each country e.g. ease of doing business, government stability etc.
- Factiva This link opens in a new windowA global news and business information service, with most material available in full text. It has a focus on business, including business news, and company and industry research. Coverage includes articles from trade magazines, newspapers, news wires, press releases, company announcements and journals.
- APAFT: Australian public affairs (full text) via Informit This link opens in a new windowCovers of Australia's political, economic, social and cultural affairs.
Technological innovations may affect the operations of an industry and have either a positive or negative affect on the market. Technological factors can include:
- new discoveries and innovations
- Research and Development (R&D) activity
- rate of technological obsolescence
- Gartner This link opens in a new windowAnalyses and interprets the business activities of technology driven industries and companies.
- Scopus This link opens in a new windowCovers the humanities and sciences. Use keyword searches for academic research looking at specific technologies, or particular industries.
- ProQuest science & technology databases This link opens in a new windowProvides access to the leading journals in science and technology. In ProQuest databases, select Science & Technology from the subject areas for relevant databases.
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:
- industry specific regulations
- health and safety regulations
- employment regulations
- MarketLine advantage This link opens in a new windowProvides in-depth PESTLE insights as part of their country Macroeconomic Outlook Reports. Covers over 50 different countries, as well as company and industry profiles. The search box is set to “All Research” by default. Change this to ‘country & risk reports’ and then type in the country you are researching.
- Worldwide tax summariesBasic information about corporate taxes and corporate tax laws in various countries published by PricewaterhouseCoopers (PwC).
Environmental or ecological factors that can impact an industry include:
- global changes in climate affecting crop production and supply
- environmental-protection laws
- waste disposal and energy consumption
- Environment complete This link opens in a new windowDatabase covering all areas of environmental sciences including ecology, climate change, renewable energy sources, natural resources, marine & freshwater science, pollution & waste management, environmental law and policy and more.
- Web of science This link opens in a new windowCovers a range of journals from the fields of environmental studies and green sustainable science technology.
