PESTLE Analysis

Posted on April 2, 2010 by

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A PESTLE Analysis is an examination of an organization’s external environment. PESTLE is an acronym for: Political, Economic, Social, Technological, Legal, and Environmental. There are many variations of this analysis such as PEST, STEP, ETPS, PESTLEE, SLEPT, STEEPLE, and PEST-G. Here are just some of the questions that could be asked relating to these factors:

Political: What influence does the government have?

Economic: How is the economy? What are the interest rates and rate of inflation?

Social: What is the culture? What are the population demographics?

Technological: What relevant technology is available, becoming available, or becoming obsolete?

Legal: Which laws and regulations is the organization subject to?

Environmental: What is the climate like? What is the weather like?

Certain organizations will be more impacted by some of these factors than others. For example, a local snowmobile shop will be impacted by environmental factors—little or no snow will likely greatly harm sales. Whereas a contractor making parts for tanks may be most interested in political factors.