Question Amy Business & Management

PESTLE analysis

How can I use PESTLE analysis?

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Answer Internal Staff

PESTLE stands for Political, Economic, Socio-Cultural, Technological, Legal and Environment. It is an extended version of PEST, which stands for Political, Economic, Socio-Cultural and Technological. A PESTLE analysis is a common feature of many business, management and marketing reports. A PESTLE analysis analyses the macro business environment that a business operates in. To conduct a PESTLE analysis, you should carry out research to find information that could affect the business. For example, a political factor could be the level of corruption in a country. Economic factors could be the level of inflation and what the interest rates are. Socio-Cultural factors include things like trends in society, for example a trend for healthier eating. A technological factor could be something like how many mobile phones are used in a country. A legal factor could be any laws and regulations that affect a business. An environmental factor could be the level of pollution in a country. The factors that are identified should then be analysed to see how much impact (if any) they would have on a business. The impact of these factors should then be considered when business, management or marketing strategies are formulated at the end of a report (Johnson, et al., 2013).


Johnson, G., Whittington, R., Scholes, K., Angwin, D., and Regnér, P. (2013) Exploring Strategy Text & Cases. 10th Edition. Cambridge: Pearson