PESTLE Definition

By Alan Shaw | Published January 18, 2011

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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Alan Shaw

Director & Senior Lecturer at Strategic Planet & Leeds Beckett University

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.