Sample PESTEL analysis
Don’t copy/paste this, it’s a sample (and the data is out of date anyway!)
This is a sample PEST analysis (rather than a full PESTEL. It’s purpose is to give you ideas
about the sort of areas you could consider in each section when writing your report. Support
your thinking with referenced research from reliable sources.
The weightings in the titles shows how important each section is to the company concerned. The
numbers beside each point indicate the importance of each point to the company concerned.
Political – weighted at 30%
Interest rates frozen until 2016 to
inflate away debts= long term savers
poorer in the longer term
Political uncertainty in the Eurozone,
investors uncertain of economic
outlook
Austerity measures (government
cuts deeper into day to day
expenses).
Quantitative easing (£50 billion
pounds more in Q1 2012) to
increase from £275 billion to £400
billion this year.
Slow economic growth, depressed
tax revenue due to prolonged
austerity measures.
Economic – weighted at 55%
25 Recession: more people facing
difficulties.
25
Rising Unemployment (2.6 million
20 according to Chartered Institute of
Personnel Development to remain high
until 2016) more people face difficulties
in 2012, coupled with accelerated fall in
20
household incomes due to austerity
measures.
25
10
Base rate frozen at historic 0.5%
10
UK economy contracted in last three
months of 2011.
10
Projected economic growth revised by
10 0.3% down from 0.7% in October 2011
to 0.4% in February 2012.
10
Eurozone crisis leading to forecast
contraction of a further 1.1%.
10
Household income shrinking due to
wages remaining unchanged, not
matching inflation, rise in commodity
price and cost of living.
5
Mortgage rates stagnating could fuel rise
in interest rates.
5
Withdrawal of financial support to
banks to increase liquidity ratios and
gearing.
5
Proposed banking act to improve
stability of banks.
5
Government meddling with bonus
incentives that drive and motivate
innovation and an entrepreneurial
culture needed for global competitive
services.
5
Social and technical follow on the next page / ….
Sample PEST analysis
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Ian Whitten
…/ PESTEL analysis (continued)
Social/cultural – weighted at 8%
Technical – weighted at 7%
Trends towards paying off existing
debt due to prevailing low interest
rates.
50 Profiling techniques (Mosaic’s finances),
helping to classify market segments
more precisely.
20
Ageing population (number of
people aged 65+ to be higher than
those under 15 years by 2015,
survive on savings hence little
monthly contributions.
30 Online services providing a low cost
channel that could isolate less wealthy
from online.
20
Conversely, online could help cut
number of branches and provide 24/7
20 services.
20
Growth of AB segment up to 2015
Sample PEST analysis
Rise in internet usage and high speeds
e.g. from Virgin media and BT
supporting growth of online retailing.
15
Rise and increasing adoption of
smartphones and iPads as a convenient
gadget for communication, pictures,
diary and mass storage devices; a
growing medium for. Possibility to offer
applications and interface for mobile
banking.
15
Enhanced mobile device security Siri for
iPhone (voice recognition), face
recognition etc could further persuade
more customers to adopt online banking
as a secure channel.
10
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Ian Whitten