1. PESTLE analysis

2. Aims
• Prepare a PESTLE analysis for a given
situation and use it to analyse the impact
of the external environment on a firm.
• Evaluate the impact on a firm’s objectives
and strategy of a change in any of the
PEST/PESTLE factors.

3. What is it?
• It’s a way of working out what is going on
‘out there’ so you can then respond to it.

4. POLITICAL
•
•
•
•
•
Environmental protection/legislation
Consumer protection
Government’s attitude
Competition regulation
Advertising standards

5. Economic
•
•
•
•
•
•
•
•
Economic growth
Taxation international trade
Exchange Rate
Employment law
Health and Safety law
Inflation
Consumer confidence
Minimum wage

6. Social
•
•
•
•
•
•
•
•
•
Income distribution
Demographics
Labour & Social mobility
Lifestyle changes
Attitudes to work and leisure
Education
Fashion and Fads
Health & Welfare
Living conditions

7. Technological
•
•
•
•
•
•
•
Changes in physical sciences
Internet
Energy use and costs
Rates of technological obsolescence
New discoveries
Govt and Industry focus on tech
Govt spending on research

8. Legal
•
•
•
•
•
•
Employment law
Health and Safety
Taxation both corporate and consumer
Other regulations
International trade barriers
Strength of the rule of law

9. Environmental
• How people’s perception and reaction to
environmental issues can affect a
business.

10. Exam tip
• Remember it is not enough to identify the
factor, you must also identify the
advantages and disadvantages as part of
your analysis and recommendation while
referring to the information provided.