What is PESTLE Analysis?
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What is PESTLE Analysis?

PESTLE analysis is a way of analysing the key external factors that might influence our organisation.

It helps us to understand the political, economic, social, and technological, legal and environmental changes that will shape our business environment.

As a manager, we can use the results of the analysis to guide our strategic decision-making.

Six Elements of PESTLE

There are six elements to a PESTLE analysis: Political, Economic, Sociological, Technological, Legal, and Environmental.

Let’s take a closer look:

Political Economic
Changes brought about by powerful bodies such as governments, the European Union (EU), Trade union movement and other regulatory bodies.  

Economic climate, interest rates (which affect the cost of borrowing and potentially, company profitability), skills shortages, consumer debt, demand for goods, import tariffs etc.


Sociological Technological
One parent families, an ageing population, consumer expectations, demographic changes, immigrant workers, lifestyles, consumer attitudes to social environmental.


Developments in medicine, mobile phones, energy sources and the internet
Legal Environmental
New laws originating from acts of Parliament, interpretations of the law by courts (both Domestic and European), International Laws.


Climate change, pollution, recycling, carbon reduction etc.

How to use PESTLE:

If you’ve enjoyed reading this article and would like to find out more, why not join us on the Level 3 in Leadership and Management which covers this and many other related topics?

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