PESTLE analysis is a useful tool for understanding the industrysituation as a whole, and is often used in conjunction with a SWOT analysisto assess the situation of an individual business. PESTLE stands for “Political, Economic, Sociological, Technological, Legal andEnvironmental” factors. The questions to ask are:
What are the key political factors likely to affect the industry?
What are the important economic factors?
What cultural aspects are most important?
What technological innovations are likely to occur?
What current and impending legislation may affect the industry?
What are the environmental considerations?
The Political factor refers to the governmental policies which are muchinfluenced by the economic situation in a country. It is a macro aspect of analyse which deal with major changes to the government policies of acountry. It has great influence to the business outlook and confidence.Political factors often comprises of
Current taxation policy
Future taxation policy
The current and future political support
Grants, funding and initiatives
Effect of wars or worsening relations with particular countries