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POLITICA

ENVIRON
MENTAL

ECONOM
IC

LEGAL

SOCIAL

TECHNO
LOGICAL

PESTLE ANALYSIS

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

Economic

Factors determine the


extent to which a
government may
influence the economy
or a certain industry.
Factors affect the
business operations
and decision making of
the organization.

Political stability
Tax policy
Trade restrictions
Tariffs
Business cycles
Economic growth
Interest rates
Inflation rate
Unemployment
Wages

Social

The cultural and


demographic aspects of
the environment.

Exchange rates
Age distribution
Income distribution
Lifestyle
Population
Emphasis on safety
Career attitudes
Consumerism
Unions

Technologic
al

Factors affect the cost


and quality of the
outputs. These also
determine the barriers
to entry and minimum
efficient production
level.

Level of education
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

Environmen
tal

Factors refer to
ecological and
environmental aspects.

Subsidies
Environmental
regulations
Environmental
impact
Energy cost
Energy
consumption
Waste disposal