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PESTLE ANALYSIS

POLITICAL
ECONOMIC
SOCIAL
TECHNOLOGICAL
LEGAL
ENVIRONMENTAL
PESTLE Analysis
A macro environmental framework used to understand the impact of the
external factors on the organization and is used as strategic analytical
technique.

Political Factors determine the
extent to which a
government may influence
the economy or a certain
industry.
 Political stability
 Tax policy
 Trade restrictions
 Tariffs
Economic Factors affect the business
operations and decision
making of the organization.
 Business cycles
 Economic growth
 Interest rates
 Inflation rate
 Unemployment
 Wages
 Exchange rates
Social The cultural and
demographic aspects of the
environment.
 Age distribution
 Income distribution
 Lifestyle
 Population
 Emphasis on safety
 Career attitudes
 Consumerism
 Unions
 Level of education
Technological Factors affect the cost and
quality of the outputs. These
also determine the barriers
to entry and minimum
efficient production level.
 Automation
 Technology incentives
 Rate of technological
change
 R&D activity
 Patent protection

Legal Factors with regard to
government laws and
regulations.
 Employment and labor
law
 Advertising law
 Competition law
 Health and safety law
 Taxation
 Subsidies
Environmental Factors refer to ecological
and environmental aspects.
 Environmental
regulations
 Environmental impact
 Energy cost
 Energy consumption
 Waste disposal