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PESTEL Analysis


This is a strategic framework to help organizations to assess macro-environmental factors. It is an examination of Political, Economic, Socio-Cultural, Technological, Environmental, and Legal Issues. Some of the factors, which we should consider are-

Political Factors - Government policy, Government stability, tax structure, foreign trade policy, trade restriction, labor law, etc.
Economic Factors - Economic growth, interest rate, exchange rate, inflation rate, unemployment, internationalization of business, money flow, etc. 
Socio-Cultural Factors - Aging population, social mobility, Life-style changes, population growth rate, etc.
Technological Factors – Technological Development, Government’s spending on Research, the pace of technological change, automation, etc.
Environmental Factors – Global warming and climate change, animal welfare, waste management, environmental protection law, etc.
Legal Factors - Employment law, Consumer law, Company law, legislation about trade practices and competition, discrimination law, health, and safety law, etc.

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