For instance, attitudes and beliefs about money, customer service, work, and leisure, and trends in lifestyles, population growth, demographics, family size, and immigration can heavily impact a business. Social attitudes, trends, and behaviors might influence your business, customers, and market. When evaluating the economic aspect of a PESTLE analysis, you should ask: What economic factors might impact our company’s pricing, revenue, and costs? 3.

For example, industry growth, seasonal changes, labor costs, economic trends, growth rates, exchange rates, interest rates, unemployment rates, consumers’ disposable income, taxation, and inflation each carry a sizable potential impact on the business. Economicįor businesses, economic factors can prove beneficial or detrimental to success. When evaluating the political aspect of a PESTLE analysis, you should ask: What governments, government policies, political elements, or groups could benefit or disrupt our success? 2.

For example, government policy, political instability, corruption, foreign trade policy and trade restrictions, labor laws, environmental laws, or copyright laws might all affect a company’s strategic planning. Many organizations are impacted by political or politically-motivated factors. We explore each of the main factors in a PESTLE analysis in a bit more depth below.

What are the 6 factors of a PESTLE analysis? This exercise is especially useful when planning marketing, organizational change, business and product development, and research. You can do a PESTLE Analysis any time you’d like to strategically assess where you are and what you’re likely to experience in the future. PESTLE analyses are useful because they help inform strategic planning, budget allocation, and market research. Organizations use PESTLE analyses to discover, evaluate, organize, and track the macroeconomic factors underlying business outcomes. Each of these concepts is an external factor that could represent opportunities and threats to your organization. PESTLE stands for the six main external factors that can influence a business: Political factors, Economic factors, Social factors, Technological factors, Legal factors, and Environmental factors. A PESTLE analysis is a strategic business tool that allows organizations to understand how various elements might impact their businesses now and in the future.

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