PESTEL Analysis

PESTEL is an acronym that stands for Political, Economical, Social, Techonological, Environmental and Legal. It is used to describe an analysis that is used for determining the opportunities and risks of global expansion. Sometimes it is described as a PEST or PESTLE analysis. Political, Economical, Social, Techonological, Environmental and Legal issues often differ domestically and even more so internationally. As a company looks to leverage the advantages that the democratization of technology, information and finance, and grow beyond the national borders that previously confined them, it is imperative that they consider a PESTEL analysis to accompany their SWOT analysis. The PESTEL analysis provides a strong framework used by global and multinational corporations to set the stage to develop specific tactics to mitigate the risks involved in executing their vision in unfamiliar environments. The additional sections of the site provide more information about how to structure a PESTEL analysis. Some data within the various sections offer insights into the sections of the analysis. Below is a bulleted list of some things to consider when writing a PESTEL Analysis. Political

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Bureaucracy Corruption Environmental Law Freedom of the Press Government Type Government Stability Labour Law Political Change Political Stability Regulation/Deregulation (NTB) Social/Employment Legislation Tariffs Tax Policy Trade Restrictions

Economic

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Social

Business Cycle Stage Consumers Disposable Income Economic Growth Exchange Rates GDP Growth Globalisation GNP Growth Interest Rates Inflation Rate (cost of capital) Labor Costs Labor Supply Likely Economic Change Unemployment Rate

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Health Consciousness Population Growth Rate Age Distribution Career Attitudes Perception of Safety. Educational Infrastructure Social Mobility Employment Patterns Attitudes to work Cultural Taboos

Technological

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Degree of Automation Emerging Technologies Impact of Internet, Reduced Communication Costs Rate of Technological Change R&D Activity (SEZs) Technology Incentives Technology Transfer

Environmental

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Legal

Weather Climate Climate Change

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Antitrust Law Consumer Law Discrimination Law Employment Law Health and Safety Laws