This presentation was used during our report on Applied Economics

1. most common environmental analysis tool

2. PESTLE ANALYSIS
 PESTL E Analysis is a useful method to use in order to
identify the external factors that influence an
organization.
 It is often used when launching a new product or
service, exploring to a new route to market, or selling
into a new country or region.

3. POLITICAL
 These determine the extent to which government
and government policy may impact on an
organisation or a specific industry. This would
include political policy and stability as well as
trade, fiscal and taxation policies too.
 GOVERNMENT POLICIES
 STABILITY OF GOVERNMENT
 TAXES

4. ECONOMIC
These factors impact on the economy and its performance,
which in turn directly impacts on the organisation and its
profitability. Factors include interest rates, employment
or unemployment rates, raw material costs and foreign
exchange rates.
EXAMPLE
 INTEREST RATES
 INFLATION
 CREDIT
 FOREX

5. SOCIAL
These factors focus on the social environment and identify
emerging trends. This helps a marketer to further
understand their customers’ needs and wants. Factors
include changing family demographics, education levels,
cultural trends, attitude changes and changes in lifestyles.
EXAMPLE
 CULTURE
 EDUCATION
 GENDER
 WEALTH DISTRIBUTION

6. TECHONOLOGICAL
These factors consider the rate of technological
innovation and development that could affect a market
or industry. Factors could include changes in digital or
mobile technology, automation, research and
development. There is often a tendency to focus on
developments only in digital technology, but
consideration must also be given to new methods of
distribution, manufacturing and also logistics.
EXAMPLE
 NEW INOVATIONS
 TECHNOLOGICAL ADVANCEMENT
 RATE OF TECHNOLOGICAL OBSOLESCENCE

7. LEGAL
An organisation must understand what is legal and
allowed within the territories they operate in. They
also must be aware of any change in legislation and the
impact this may have on business operations. Factors
include employment legislation, consumer law,
healthy and safety, international as well as trade
regulation and restrictions.
EXAMPLE
 PRODUCT REGULATION
 EMPLOYMENT LAWS
 PATENT
 HEALTH AND SAFETY REGULATIONS

8. ENVIRONMENTAL FACTORS
These factors have only really come to the forefront in the last
fifteen years or so. They have become important due to the
increasing scarcity of raw materials, population targets,
doing business as an ethical and sustainable company,
carbon footprint targets set by governments (this is a good
example were one factor could be classes as political and
environmental at the same time).
EXAMPLE
 GEOGRAPHICAL LOCATION
 WEATHER