PESTLE Definition

A PESTLE analysis is a method for reviewing the macro environment (external forces that impact a company’s ability to plan). It stands for:

  • Political
  • Economic
  • Sociological
  • Technological
  • Legal
  • Environmental

These forces, although out of the company’s control, may have an impact on the success of any future plans. By considering them, a company can change direction, build contingencies, identify new opportunities or do nothing at all: it is an important part in the strategic decision making. Managers have used a combination of the factors to suit their needs including:

  • PEST
  • STEP
  • ETPS

The important things to focus on are those factors which directly impact your business. There has been an update to the tool, incorporating Ethical issue (PESTLEE) covering:

  • Child labour.
  • Sweat shops.
  • Human rights.
  • Compliance to equal opportunities.

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Dr Alan Shaw is a Senior Lecturer and Marketing consultant focusing on a range of sectors. His main interests are in strategy development, social marketing, digital marketing, advertising, consumer behaviour and marketing application.