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PESTLE factors


The PESTLE model is used by business analysts the analyse the external business environment of an organization.

Business analysis models and techniques such as PESTLE and more are all covered in-depth in our Business Analyst Certification online courses.

PESTLE factors

PESTLE refers to the following external factors:

  • Political.
  • Economic.
  • Socio-cultural.
  • Technological.
  • Legal.
  • Environmental.

Political influences

  • The stability of the government or political situation.
  • Government policies.
  • Trade regulations or tariffs.

Economic influences

  • Interest rates.
  • Inflation.
  • Unemployment.
  • The internationalisation of business.

Socio-cultural influences

  • Demographics.
  • Social mobility.
  • Lifestyle changes.

Technological influences

  • Developments in technology.
  • The quality of academic research.
  • Demand for invention and innovation.
  • The creation of technology-enabled industries.

Legal influences

  • Trade policy.
  • Employment law – employment protection, discrimination etc.
  • Health and safety regulation.
  • Company law.
  • Financial regulation.

Environmental influences

  • Global warming and climate change.
  • Animal welfare.
  • Waste, such as unnecessary packaging.
  • Environmental protection legislation such as new laws on waste disposal and recycling.

PESTLE infographic

The following infographic explains how to employ a PESTLE analysis in greater detail.

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