PESTLEanalyse

PESTLEanalyse, also written as PESTLE analysis or PESTEL analysis, is a framework used in strategic management to evaluate macro-environmental factors that can affect an organization. It organizes external influences into six categories: Political, Economic, Social, Technological, Legal, and Environmental. The goal is to understand the external environment, identify opportunities and threats, and inform strategic planning, risk assessment, and scenario development.

The six factors are described as follows: Political factors include government policies, stability, tax regimes, trade restrictions, and subsidies. Economic factors cover growth rates, inflation, exchange rates, interest rates, and unemployment. Social factors address demographics, cultural norms, lifestyle shifts, and education levels. Technological factors consider innovations, automation, digitalization, and intellectual property. Legal factors involve laws and regulations, consumer protection, labor standards, and industry compliance. Environmental factors focus on sustainability, climate change, resource availability, and ecological regulations.

Typical process steps are: define scope and objectives, gather relevant data, identify factors in each category, assess potential impact and likelihood, and prioritize factors to develop implications and actions. Variants include PEST, PESTEL, and STEEPLE, with STEEPLE sometimes adding Ethical considerations.

Applications encompass market entry or exit decisions, product development and positioning, regulatory risk assessment, and sustainability planning. Limitations include subjectivity in factor selection, varying data quality, and the need to complement PESTLE with other tools to form a comprehensive view of the business environment.