Understanding PESTLE Analysis
- PESTLE analysis examines the external factors that are likely to impact the activities and outcomes of a business
- PESTLE is an acronym for:
- Political
- Economic
- Social
- Technological
- Legal
- Environmental
- PESTLE analysis can support effective decision-making by senior managers who will better understand the complex context within which the business operates
- Managers can use the information gathered to understand the potential threats to the businesses performance and identify future difficulties so that action can be taken to help avoid and eliminate their effects
PESTLE External Factors
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Political |
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Economic |
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Social |
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Technological |
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Legal |
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Environmental |
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Exam Tip
When using PESTLE Analysis, you must focus on each factor's impact on business activity rather than its origin. The cause is not so important, but the impact of the factor is what needs to be considered.