PESTLE analysis identifies and evaluates how Political, Economic, Social, Technological, Legal, and Environmental factors impact business operations. The strategic planning framework helps business and project managers in the decision-making process. (What is a PESTLE Analysis?)
Please view the table below for a breakdown of the different portions of the PESTLE analysis.
|
Political
|
Economic |
Social |
Technological |
Legal |
Environmental |
|
Political factors include government policies, leadership, and change; foreign trade policies; internal political issues and trends; tax policy; regulation and de-regulation trends.
|
Economic factors include current and projected economic growth; inflation and interest rates; job growth and unemployment; labor costs; impact of globalization; disposable income of consumers and businesses; likely changes in the economic environment.
|
Social factors include demographics (age, gender, race, family size); consumer attitudes, opinions, and buying patterns; population growth rate and employment patterns; socio-cultural changes; ethnic and religious trends; living standards.
|
How innovation and technological changes can either positively or negatively impact the introduction of a product or service into a marketplace is assessed here. |
Legal factors include health and safety; equal opportunities; advertising standards; consumer rights and laws; product labeling and product safety. |
Environmental factors are important due to the increasing scarcity of raw materials; pollution targets; doing business as an ethical and sustainable company; carbon footprint targets.
|
|
Examples:
- Government, trade, and tax policies
- International Trade Regulations
- regulation and political trends
- Government organization, attitude
- Political stability/changes in leadership
|
Examples:
- Interest rates and monetary policies
- Unemployment rates and policies
- Stage of the business cycle
|
Examples:
- Demographics, population growth
- Changes in Lifestyle/ Trends
- Work/Career attitudes, entrepreneurial spirit
- Fashion, trends, Income distribution
- Health consciousness, welfare
|
Examples:
- Government research spending
- Research and development/New inventions
|
Examples:
- Labor and employment laws
- Anti-competitive practices
- Contract enforcement laws
|
Examples:
- Environmental regulations
- Consumer Environmental Awareness
|
Need to find information on one of the factors above?
Simply use Google and type in the name of the factor and then add by country. You will get results that may be useful!
Further Information:
