PESTEL analysis is a tool used by marketers and other analysts to monitor the macro environment for a business. The initials means:
P – political
E – Economic
S – Social
T – Technology
E – Environment
L – Legal
Political Factors
Under this item we look at how much the state intervenes in the economy through taxation, budgets and various laws.
Economic Factors
Under this factor, analysts look at various components such as inflation, economic growth and interest rates among other factors.
Social Factors
These factors are also known as sociocultural factors. Here we look at career attitudes, population growth and age distribution among other issues.
Technological factors
We focus on technological changes in our business area.
Environmental factors
Focus on pollution targets, availability of raw materials, carbon footprint and sustainability among others.
Legal factors
Under this item we focus on sector standards, health and safety, consumer rights, product policy among others.
Conclusion
Remember that after conducting the PESTEL analysis, you use the findings to conduct a SWOT analysis.
Now you know. Thank you for reading.
