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Business Strategy

Business Strategy

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Published by: anandgupta512 on Dec 28, 2010
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06/22/2013

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PESTEL attempts to provide a broad framework on how the
PESTEL attempts to provide a broad framework on how the
broader environmental forces affects an organization and

broader environmental forces affects an organization and
influences the way it practices strategy.

influences the way it practices strategy.
It is not intended to be used as an exhaustive list.
It is not intended to be used as an exhaustive list.
It is particularly important that PESTEL be used to look at
It is particularly important that PESTEL be used to look at
the future impact of environmental factors, which may be

the future impact of environmental factors, which may be
different from the past impact.

different from the past impact.
It is important not only to identify the structural drivers of
It is important not only to identify the structural drivers of
change, but also to analyze the complex linkages across

change, but also to analyze the complex linkages across
them.

them.

Understanding the composite effect is critical, for which a
Understanding the composite effect is critical, for which a
holistic picture is required.

holistic picture is required.

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PESTEL FRAMEWORK

PESTEL FRAMEWORK

Political –

Political – Government Stability, Government Attitude, Economic Model,
Government Stability, Government Attitude, Economic Model,
Central – State Co-alignment, Subsidies & Protection, Licensing & Quotas.

Central – State Co-alignment, Subsidies & Protection, Licensing & Quotas.

Economic –

Economic – GDP, Fiscal Deficit, Savings & Investment, Inflation & Interest
GDP, Fiscal Deficit, Savings & Investment, Inflation & Interest
Rates, Monsoon & Food Grains Reserves, Economic Cycles, Capital Market &

Rates, Monsoon & Food Grains Reserves, Economic Cycles, Capital Market &
Forex Reserves, Currency Stability, Infra-Structural Investments, FDI Inflows.

Forex Reserves, Currency Stability, Infra-Structural Investments, FDI Inflows.

Social –

Social – Population Diversity, Religious Sentiments, Literacy Levels, Income
Population Diversity, Religious Sentiments, Literacy Levels, Income
& Age Distribution, Language Barriers, Social Values.

& Age Distribution, Language Barriers, Social Values.

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PESTEL FRAMEWORK

PESTEL FRAMEWORK

Technological –
Technological – Innovation,

Innovation, Obsolescence Rate,
Obsolescence Rate,

Patents, Research & Development, ERP,

Patents, Research & Development, ERP,
Technological Convergence.

Technological Convergence.
Environmental –
Environmental – Global Warming & CSR, Product
Global Warming & CSR, Product
Design, Environmentally Preferable Purchasing,

Design, Environmentally Preferable Purchasing,
Extended Producer Responsibility, Waste Disposal &

Extended Producer Responsibility, Waste Disposal &
Emissions, Non-Fossil & Alternative Fuels, Carbon

Emissions, Non-Fossil & Alternative Fuels, Carbon
Credits, Pollution Control Laws.

Credits, Pollution Control Laws.

Legal –

Legal – Monopolies Legislation, Employment Laws,
Monopolies Legislation, Employment Laws,
Product Safety & Health Hazards, Direct & Indirect

Product Safety & Health Hazards, Direct & Indirect
Taxes, Patent Laws, Consumer Protection Laws.

Taxes, Patent Laws, Consumer Protection Laws.

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ECONOMIC LIBERALISATION

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