LibGuides: Industry Research: PESTEL Analysis (2024)

FAQs

How do I find information for PESTLE analysis? ›

PESTLE stands for Political, Economic, Social, Technological, Legal, and Environmental factors. Country reports may include PESTLE analyses. Look for these reports in databases that offer country information, such as GlobalData Explorer (formerly Marketline).

It can enable an organisation to spot business opportunities and exploit them fully. Disadvantages: Some PESTLE analysis users oversimplify the amount of data used for decisions – it's easy to use insufficient data. The risk of capturing too much data may lead to 'paralysis by analysis'.

PESTEL is an acronym and the letters stand for Political, Economic, Social, Technological, Environmental and Legal. Also, this framework helps to keep track of all the changes happening in the environment.

The factor competitor analysis should not be included in Pestle analysis. A PESTLE analysis is a context to analyze the key factors (Political, Financial, Sociological, Technical, Legal, and Environmental) manipulating an organization from the outside.

SWOT analysis, PESTLE analysis, and Porter's Five Forces Analysis are competitive analysis frameworks that allow a company to assess their competition, and understand their own position in the market, in different ways.

It encourages the development of external and strategic thinking. It can enable an organisation to anticipate future business threats and take action to avoid or minimise their impact. It can enable an organisation to spot business opportunities and exploit them fully.

Marketing Planning

Organizational change is a PESTLE analysis example. It deals with the possible opportunities and threats around labor changes, such as skills, increment or decrement in the labor cost, shortages, or current workforce capabilities.

Pestle Analysis Examples: Coca Cola

It offers different products to its large number of customers worldwide. It uses the finest technology in production. Its products meet customers' expectations. It is a renowned soft drink production company in the world.

To do a PEST analysis, you must consider the different factors under each category (political, economic, social, and technological), and how these factors affect your business. For the political component, you would assess laws, regulations, government policies, and tariffs, for example.

How do you write a PESTLE analysis for a case study? ›

You can use a narrative approach to present the PESTEL analysis, framing it as a story of how external factors are impacting the organization. Use analogies or metaphors: Analogies or metaphors can help simplify complex information and make it more relatable.

In particular, PESTEL reflects the names of the six segments of the general environment: (1) political, (2) economic, (3) social, (4) technological, (5) environmental, and (6) legal.

PESTLE analysis can help to plan the required workforce for an organization. For example, a technical workforce will be required for a technology-related business. PESTLE analysis help to choose the right workforce by considering factors like availability of labor, availability of skilled labor, and the cost.

The purpose of a PESTEL analysis is to help business leaders understand what factors may impact the business and what opportunities and risks those influences might create—helping leaders make better decisions and plan effectively for the future.

Ethical Factors

It considers things such as fair trade, slavery acts and child labour, as well as corporate social responsibility (CSR), where a business contributes to local or societal goals such as volunteering or taking part in philanthropic, activist, or charitable activities.

The main differences between a SWOT or PESTLE analysis are that a SWOT analysis focuses on actions you can take INTERNAL to your business environment, a PESTLE analysis identifies EXTERNAL factors that are mainly outside of your control.