PESTLE Analysis

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  • Created by: jasmac822
  • Created on: 09-05-19 12:01
What is a PESTLE Analysis?
The PESTLE analysis is a useful tool for understanding market growth or decline, and as such the position, potential and direction for a business.
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What Does the 'P' Represent?
POLITICAL: Political factors refer to how and what degree a government intervenes with the economy or a certain industry. This includes government policy, political stability or instability, corruption, foreign trade policy etc.
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What Does the 'E' Represent?
ECONOMIC: Economic factors are determinants of certain economy’s performance. Factors include economic growth, exchange rates, inflation rates. Factors may have a direct or indirect long term impact on a company.
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What Does the 'S' Represent?
SOCIAL: Includes population trends such as the population growth rate, age distribution, income distribution, lifestyle attitudes and cultural barriers.
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What Does the 'T' Represent?
TECHNOLOGICAL: Refers to technology incentives, the level of innovation and research and development. May influence decisions to enter or not enter certain industries and to launch or not launch certain products
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What Does the 'L' Represent?
LEGAL: Legal factors may have an overlap with the political factors. These include more specific laws such as discrimination laws. Tricky if organisation is trading globally as each country has it's own set laws and regulations
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What Does the 'E' Represent?
ENVIRONMENTAL: These factors include ecological and environmental aspects such as weather, climate, environmental offsets and climate change. Growing awareness of the potential impacts of climate change is affecting how companies operate
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Other cards in this set

Card 2

Front

What Does the 'P' Represent?

Back

POLITICAL: Political factors refer to how and what degree a government intervenes with the economy or a certain industry. This includes government policy, political stability or instability, corruption, foreign trade policy etc.

Card 3

Front

What Does the 'E' Represent?

Back

Preview of the front of card 3

Card 4

Front

What Does the 'S' Represent?

Back

Preview of the front of card 4

Card 5

Front

What Does the 'T' Represent?

Back

Preview of the front of card 5
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