PEST analysis is the most used method for evaluating the external business environment (Gupta, 2013,

p. 13). PESTEL analysis is the extension. The acronym PESTEL stands for Political, economic, social,
cultural and demographic, technological, environmental, and legal factors (Idris & Rahman, 2018, p.
436). For example, in the aspect of technology, if a company properly follows the trend in technology,
the company may adjust to the consumer behavior, thereby capable of giving customer satisfaction. If a
company keeps up to date with the latest development, the company may know how to adjust to the
current flow of consumer behavior.

In an era of fast social and technical change, companies must adapt and evaluate the significance of the
change in order to achieve sustainability and social justice (Waddock et al., 2015, p. 994). Technological
advancements involve superior machines ever. Thus, it is necessary to stay current (Dai et al., 2017, p.
143). These assertions emphasize technical advancement. Technology affects human behavior. For
example, the emergence of various cell phones, internet applications, and services have emerged due to
technical improvements, allowing many persons to employ them (Akroush & Al-Debei, 2015, p. 1354).
As a result of internet improvements, an increasing number of consumers make purchases online.

Companies must properly analyze the political, economic, social, cultural, technological, and legal
aspects. In this way, companies may add new knowledge, such as consumer behavior, political policies,
and the economic environment, allowing the company to have adjustments. Hence, companies may
survive with the rapid uncontrolled changes such as politics and economic changes. It is nothing wrong
when a company cannot control the current changes. However, it will be utter destruction if the
company cannot adjust to the current situation.

Akroush, M. N., & Al-Debei, M. M. (2015). An integrated model of factors affecting consumer attitudes
towards online shopping. Business Process Management Journal, 21(6), 1353–1376.
https://doi.org/10.1108/BPMJ-02-2015-0022

Dai, J., Kong, X., Zhang, D., Li, W., & Dong, H. (2017). Technologies and theoretical basis of light and
simplified cotton cultivation in China. Field Crops Research, 214, 142–148.
https://doi.org/10.1016/j.fcr.2017.09.005

Gupta, A. (2013). Environmental and pest analysis: An approach to external business environment.
International Journal of Modern Social Sciences, 1(2), 13–17.

Idris, J., & Rahman, S. S. (2018). Analyzing marketing macro environment of Islamic tourism industry in
Malaysia. International Conference on Management and Muamalah, 2018(ICoMM), 435–442.

Waddock, S., Meszoely, G., Waddell, S., & Dentoni, D. (2015). The complexity of wicked problems in
 large scale change. Journal of Organizational Change Management, 28(6), 993–1012.
https://doi.org/10.1108/JOCM-08-2014-0146

(Akroush & Al-Debei, 2015; Dai et al., 2017; Waddock et al., 2015)