PESTELi

PESTELi is a strategic analytical framework used to identify and analyze external macro-environmental factors that can impact an organization. It is an extension of the PESTLE analysis, incorporating an additional element to provide a more comprehensive view. The acronym PESTELi stands for Political, Economic, Social, Technological, Environmental, Legal, and (the added) International. Each component represents a distinct area of the external environment that businesses must consider. Political factors relate to government policies, political stability, and trade regulations. Economic factors encompass the broader economic climate, including inflation, interest rates, and economic growth. Social factors examine demographic trends, cultural norms, and consumer attitudes. Technological factors focus on innovation, research and development, and the pace of technological change. Environmental factors consider issues such as climate change, pollution, and sustainability. Legal factors involve laws and regulations that affect business operations, such as employment law and consumer protection. Finally, the International element addresses global trends, international trade agreements, and foreign market conditions, recognizing the increasing interconnectedness of the global economy. By systematically assessing these factors, organizations can gain a better understanding of opportunities and threats, enabling more informed strategic decision-making and risk management.