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What is PESTLE Analysis
PESTLE Analysis is an analytical technique used for the strategic analysis of organizational surroundings. PESTLE is an acronym and each letter represents a different type of external factors: political, economical, social, technological, legal, ecological.

PESTLE Analysis is an analytical technique used for the strategic analysis of organizational surroundings. PESTLE (sometimes also PESTEL) is an acronym and each letter represents a different type of external factors:

  • P - Political - existing and potential effect of political influences
  • E - Economical - effect and influence of local, national and global economy
  • S - Social - projection of social changes inside the organization, cultural influences are also part of it (local, national, regional, global)
  • T - Technological - effects of existing, new and advanced technologies
  • L - Legal - effects of national, European and international legislation
  • E - Ecological - local, national and global environmental issues and questions of its solution

The essence of the analysis is to identify for each of the factos the most important phenomena, events, risks and influecnes that affect or will affect the organization. PESTLE method is part of the methods used in impact analysis. Sometimes is used for analysis of external factors in SWOT analysis.

Sometimes, it is used similar simplified version called PEST analysis:

  • P - Political - existing and potential effect of political influences
  • E - Economical - effect and influence of local, national and global economy
  • S - Social - projection of social changes inside the organization
  • T - Technological - effects of existing, new and advanced technologies

Sometimes it is used the term/acronym STEEPLED analysis, where the factors are identical to the PESTLE, but there are added ethical and demographic factors.

Alternatively, it is used the name of STEER analysis, when the identical factors are arranged as follows:

S - Socio-cultural factors T - Technological factors E - Economic factors E - Ecological factors R - Regulatory factors (legislation as the regulation)

Other variation are known as SLEPT or STEP methods.

Related terms and methods:

Related management field:

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Last update: 30.07.2015

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