PESTLE
Introduction
PESTLE is an analytical framework which can be used to evaluate the potential future conditions for the
business, in respect of political, economic, social, technological, legal and environmental forces. PESTLE is
similar to a STEEP analysis, which evaluates Political, Economic, Environment, Social and Technological
factors.
Political forces:
Government policies, political stability, European Union integration and political
pressure group activity
Economic forces:
Economic growth/decline, stability, interest rates, inflation, levels of taxation and
exchange rates.
Social forces:
Changes in lifestyle; changes in fashions; changes in the structure of the population
(demographic change), eg. age trends, birth and death rates, gender structure,
ethnic structure, and mobility trends - where people are living/moving to new areas.
Technological forces:
Pace of change in process technologies (how the products are made) or product
technologies (technology in the product itself); cost of technology
(reducing/increasing).
Legal forces:
Legislation affecting how a company operates, its cost and the demand for its
products, for example, discrimination, consumer, employment and health and safety
legislation
Environment issues:
Supply/ cost of raw materials, energy costs, environmental protection controls
It is very useful to use additional sources of information for undertaking the PESTLE analysis, for example
market forecasts or government reports. Such reports exist for a wide range of industries and will help
prevent organisations from having to do this research themselves.
Consider each area to identify what changes are likely to have an impact on the organisation, be as specific
as possible. Specific issues as they relate to the company and business environment can then be used to
draw conclusions about the potential impact on the organisation.
Further Information for content of PESTLE analysis:
Internal
External


Management team
Employees
Research and publications

www.wmro.org

www.trendwatching.com




Customers
Suppliers
External consultants / specialists
Seminars and conferences


www.dti.gov.uk/publications
www.foresight.gov.uk
Instructions
The template on the next page may be used to capture the results of the following steps:
Key Steps:
Step 1:
Step 2:
Step 3:
Step 4:
Identify which of the factors above may impact on the organisation, its customers or its
suppliers in the future
For each of the key trends identify what specific issues it raises for the organisation? Be
specific
How might these issues impact on the organisation?
What actions can you take to take account of these key trends (either to mitigate risks to
the organisation, or take advantage of opportunities)
TRANSFORMING CAPABILITY SUPPORT MATERIALS
LEADING VISION CREATION
PESTLE
Key Trends
Impact
Political
Economic
Social
Technological
Legal
Environmental
Actions
TRANSFORMING CAPABILITY SUPPORT MATERIALS
LEADING VISION CREATION