ORGANIZATION AND

MANAGEMENT
PESTLE
ANALYSIS
 PESTLE
A PESTLE ANALYSIS STUDIES THE KEY
EXTERNAL FACTORS THAT INFLUENCE AN
ORGANISM.

IT CAN USE IN RANGE OF DIFFERENT

SCENARIOS, AND CAN GUIDE PEOPLE
PROFESSIONAL AND SENIOR MANAGERS IN
STRATEGIC DECISIOM-MAKING.
P - POLITIC FACTORS
E - ECONOMY FACTORS
S - SOCIAL FACTORS
T - TECHNOLOGICAL FACTORS
L - LEGAL FACTORS
E - ENVIRONMENT FACTORS
PESTLE ANALYSIS PROCESSES
 IdentIfy the escope of the research.
 Decide where the information will be collected by whom.
 Identify appropriate sources of information.
 Gather the information.
 Analyse the findings.
 Make each item in terms of importance.
 Identify the business options to addres the issues.
 Write dicussion document for all stakeholders.
 Dissemenate and discuss the findings with stakeholders
 Decide what actions need to be taken.
 POLITIC FACTORS
These factors determine the external to which a
goverment may influence an industry or a company.
FACTORS IN POLITICS:
1. Tax policy
2. Environmental regulations
3. Trade restriction and reform
4. Tariffs
5. Political stability
 ECONOMY FACTORS

Economic factors will include :

1. Exchange rates
2. Economic growth or decline
3. Globalisation
4. Inflation
5. Interest rate and cost of living
6. Labour costs
7. Consumer spending
 SOCIAL FACTORS

SOCIAL FACTORS INCLUDE:

1. Cultural norms and expectations
2. Health consciousness
3. Population growth rate
4. Age distribution
5. Career attitudes
6. Health and safety
 TECHNOLOGICAL FACTORS

TECHNOLOGICAL FACTORS INCLUDES:

1. Production techniques
2. Information and communication resourses
3. Production
4. Logistics
5. Marketing
6. E-commerce technoloies
 LEGAL FACTORS

Legal factors are external factors which refers to how the

law affects the way of businesses operate and customers
behave.

Apart from these rules/laws,companies maintain their

own set of rules and regulations. So, legal analysis takes
accounts of both these angles and form strategies keeping
them in mind.
LEGAL FACTORS INCLUDES:
1. Changes to legistation impactimg employment
2. Access to materials
3. Quotas
4. Resources
5. Import or export
6. Taxidation
7. Zonings laws
 ENVIRONMENT FACTORS
These factors are mainly concerned with the effect
of the surrounding environment and the influence of
ecological aspects.
In business analysis the word environmental can
sometimes refer to all external factors that affect a business
from Political to Legal factors.
It also called ECOLOGICAL FACTORS refer to a
variable regarding the physical environment.
 ENVIRONMENTAL FACTORS INCLUDE:

1. Climate
2. Climate change
3. Weather
4. Pollution
5. Environmental-related laws
CONCLUSION

PESTLE analysis- is a tool used in business to gain

information about a company circumtances. Performed to
understand external factors.

Conducting PESTLE analysis, much like conducting a

SWOT analysis.
ANSWER IN 1/4 CROSS WISE
1.The PESTEL analysis the key ________ factor.
2.What is the 5th step in PESTEL analysis.
3.It is a factor which a goverment influence a company or industry.
4. A factor which how the law affect the way of businesses.
5._________ maintain their own set of rules and regulations.
6.This factor mainly concern with the effect of the surrounding environment.
7. Environmental can sometimes refers to __________.
8. It is a tool to gain information about company circumtances.
9.PESTLE analysis performe to understand __________.
10. Environmental factor is also called?
11.Conducting a PESTLE analysis, is like conducting a _______ analysis.
12. Environmental Factor refers to a variable regarding the ___________.
 13 to 20 choose from the six steps (Politics, Economy,
Social,Technological,Legal,and Environmental factrors).

13.TAX POLICY
14.CLIMATE CHANGE
15.ZONINGS LAW
16.PRODUCTION
17.CARRER ATTITUDE
18.INFLATION
19.WEATHER
20.ENVIRONMENTAL RELATED LAWS
ANSWER KEY
1.External factors 13. Political factors
2.Legal factors 14. Environmental factors
3.Political factors 15. Legal factors
4.Legal factors 16. Technological factors
5. Companies/Company 17. Social Factors
6. Evironmental factors 18. Economy/ Economical Factors
7.All external factors 19. Environmental factors
8. PESTLE/PESTEL analysis 20. Environmental factors
9.External factor
10. Ecological factor
11. SWOT analysis
12.Physical environment