A PESTLE Analysis is a framework for identifying the Political, Economic, Social, Technological, Legal and Environmental factors that could impact your business. It’s commonly presented as a six pillar structure and can be applied to any business in any industry.
The structure of a PESTLE allows you to easily view all of the key external factors influencing your business in one diagram.
PESTLE as a framework has several advantages:
As with every tool, PESTLE has some limitations
A PESTLE can be one of the most insightful and detailed frameworks, helping you future proof and grow your business by being fully focused to the external environment.
There are two golden rules to follow before you begin your PESTLE:
While no prework is required for a PESTLE, it is helpful to have knowledge of:
If in a group, these can be shared via an email beforehand or presented on the day.
LoNGPESTLE is the same as PESTLE with an added dimension of Local, National and Global within each pillar, allowing you to classify entries by their geographic impact. You can find out more in our guide on LoNGPESTLE.
The first concept of PESTLE, initially just PEST, is commonly cited to be Francis Aguilar who published a book in 1967 referring to ETPS.
PESTLE works best when put together by a cross-disciplined team either physically or virtually. You need a mix of employees with different skills and market knowledge to ensure you capture all aspects of the pillar.
Many example PESTLEs can be found in the Lucidity tool such as:
It is best practise to review your PESTLE on an annual basis, this helps provide you with the ever changing landscape you operate in and keeps all employees looking outward when making their decisions.
You can check out our guide to completing a PESTLE or view the video below!
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