550:, which may especially affect industries such as tourism, farming, and insurance. For instance, growing awareness of the potential impacts of climate change is affecting how companies operate and the products they offer, both creating new markets and diminishing or destroying existing ones. Further, the PESTLE analysis is one of the most frequently applied models in the evaluation of the highly dynamic external business environment. It is employed as a method in research due to its usefulness. For example. a growing number of studies applied this analytical tool in different sustainable projects, including the evaluation of external factors affecting management decisions for coastal zone and freshwater resources, development of sustainable buildings,
649:
which has borrowed heavily will need to focus more on the economic factors (especially interest rates). Furthermore, conglomerate companies who produce a wide range of products (such as Sony, Disney, or BP) may find it more useful to analyze one department of its company at a time with the PESTEL model, thus focusing on the specific factors relevant to that one department. A company may also wish to divide factors into geographical relevance, such as local, national, and global.
40:
658:
of categories that can be deceivingly simple because they lack specific criteria about what exactly catalyses disruption. In other words, the PEST analysis does not offer guidelines for what to emphasise and what not to emphasise within the categories. As a result, firms can be blindsided by disruptions that cannot be neatly defined within the categories.
657:
Whereas the PEST analysis is broadly used in business practice, critics argue that it has limitations. PEST analysis can be helpful to explain market changes in the past, but it is not always suitable to predict or foresee upcoming market changes. The reason is that PEST analysis offers a broad range
648:
companies tend to be more affected by the social factors, while a global defense contractor would tend to be more affected by political factors. Additionally, factors that are more likely to change in the future or more relevant to a given company will carry greater importance. For example, a company
464:
factors include the cultural aspects and health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. High trends in social factors affect the demand for a company's products and how that company operates. For example, the ageing population may imply a
372:
framework. Aguilar argued that firms must scan the economic, technical, political and social categories (ETPS) that may affect strategy, defining environmental scanning as follows, “scanning for information about events and relationships in a company’s outside environment, the knowledge of which
361:, and gives an overview of the different macro-environmental factors to be taken into consideration. It is a strategic tool for understanding market growth or decline, business position, potential and direction for operations.
596:). Demographic factors include gender, age, ethnicity, knowledge of languages, disabilities, mobility, home ownership, employment status, religious belief or practice, culture and tradition, living standards and income level.
465:
smaller and less-willing workforce (thus increasing the cost of labour). Furthermore, companies may change various management strategies to adapt to social trends caused from this (such as recruiting older workers).
612:
factors. Intercultural factors considers collaboration in a global setting. Other factors discussed in chapter 10 of the SPELIT Power Matrix include the
Ethical, Educational, Physical, Religious, and Security
619:, a form of environmental analysis which looks at the aspects of political, military, economic, social, information, infrastructure, physical environment and time aspects in a military context.
1331:
734:
793:"A Political, Economic, Social, Technological, Legal and Environmental (PESTLE) approach for assessment of coastal zone management practice in India"
1007:
Tan, J.; Chua, Wen Ling; Chow, C.; Chong, M.; Chew, B. C.; Melaka, Malaysia; Jaya, Hang Tuah (2012). "PESTLE Analysis on Toyota Hybrid
Vehicles".
1324:
1180:
1102:
953:
644:
The model's factors will vary in importance to a given company based on its industry and the goods it produces. For example, consumer and
1143:
412:, and political stability. Political factors may also include goods and services which the government aims to provide or be provided (
328:
1317:
1417:
1407:
680:(strengths, weaknesses, opportunities, threats), a method for strategic planning analysis comparing positive and negative factors
274:
242:
1081:
A Brief
Intellectual History of the STEPE Model or Framework (i.e., the Social, Technical, Economic, Political, and Ecological)
934:"Possibilities and Challenges of Implementing Renewable Energy in the Light of PESTLE & SWOT Analyses for Island Countries"
791:
Sridhar, R.; Sachithanandam, V.; Mageswaran, T.; Purvaja, R.; Ramesh, R.; Vel, A. Senthil; Thirunavukkarasu, E. (2016-07-02).
1146:, Chapter 28 of "Education Applications and Developments" edited by Mafalda Carmo, Science Press, 2015 Retrieved 2015-08-21.
215:
349:("political, economic, socio-cultural and technological") describes a framework of macro-environmental factors used in the
1463:
1306:, discusses how a PEST analysis can help determine the risks and opportunities associated with entering a foreign market.
1130:
667:
748:
Nandonde, Felix Adamu (9 April 2019). "A PESTLE analysis of international retailing in the East
African Community".
1468:
1254:
1372:
269:
840:"Strategic analysis of barriers and solutions to development of sustainable buildings using PESTLE technique"
543:
454:. These factors can drastically affect how a business operates. For example, interest rates affect a firm's
369:
350:
321:
932:
Islam, F. R.; Mamun, K. A. (2017), Islam, F.M. Rabiul; Mamun, Kabir Al; Amanullah, Maung Than Oo (eds.),
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283:
260:
197:
39:
886:
1432:
645:
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354:
292:
107:
58:
1157:
Comparison of the STEEPLE Strategy
Methodology and the Department of Defense’s PMESII-PT Methodology
1367:
206:
152:
139:
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1211:
1008:
914:
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728:
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523:
519:
365:
247:
134:
76:
72:
357:. It is part of an external environment analysis when conducting a strategic analysis or doing
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405:
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63:
23:
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would assist top management in its task of charting the company’s future course of action.”
161:
130:
1236:
1206:
1197:
1033:
974:
Achinas, Spyridon; Horjus, Johan; Achinas, Vasileios; Euverink, Gerrit Jan Willem (2019).
455:
439:
358:
211:
175:
121:
112:
81:
1427:
1382:
1049:"Barriers and Drivers of Transition to Sustainable Public Transport in the Philippines"
940:, Green Energy and Technology, Cham: Springer International Publishing, pp. 1–19,
672:
547:
542:, which can affect how a company operates, its costs, and the demand for its products.
535:
447:
429:
287:
278:
193:
148:
125:
103:
1255:"Market-scanning and market-shaping: why are firms blindsided by market-shaping acts?"
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decisions. Furthermore, technological shifts would affect costs, quality, and lead to
1457:
1422:
1352:
1286:
1253:
Diaz Ruiz, Carlos A.; Baker, Jonathan J.; Mason, Katy; Tierney, Kieran (2020-06-15).
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609:
531:
451:
443:
251:
238:
1437:
1047:
Guno, Charmaine Samala; Collera, Angelie Azcuna; Agaton, Casper
Boongaling (2021).
686:(value, rarity, imitability, organization), a strategic business analysis framework
635:
framework explores technical, economic, legal, operational, and scheduling factors.
546:
factors include ecological and environmental aspects such as weather, climate, and
527:
417:
296:
166:
902:
855:
808:
1198:"Interrelated Attributes of Project Feasibility: Visualizing the TELOS Framework"
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intervenes in the economy. Specifically, political factors have areas including
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Smart Energy Grid Design for Island
Countries: Challenges and Opportunities
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1048:
887:"Holistic sustainability assessment of green building industry in Turkey"
54:
31:
992:
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or merit bads). Furthermore, governments have a high impact on the
1144:
Using the SPELIT Analysis
Technique for Organizational Transitions
625:
considers sociocultural, technological, economic, ecological, and
515:
1442:
1392:
683:
300:
256:
1313:
1159:, Supply Chain Leadership Institute, accessed 10 February 2019
416:) and those that the government does not want to be provided (
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factors, but does not specifically include political factors.
458:
and therefore to what extent a business grows and expands.
1121:, Chartered Institute of Procurement & Supply, p. 116
976:"A PESTLE Analysis of Biofuels Energy Industry in Europe"
1097:. Aotearoa New Zealand: Smith & Wild. p. 218.
487:, minimum efficient production level and influence the
1169:
Lawrence P. Carr; Alfred J. Nanni Jr. (28 July 2009).
1175:. Springer Science & Business Media. p. 44.
503:Variants that build on the PEST framework include:
885:Ulubeyli, Serdar; Kazanci, Oguzhan (2018-11-20).
844:International Journal of Construction Management
1095:Futurework - A Guidebook for The Future of Work
381:The basic PEST analysis includes four factors:
1259:Journal of Business & Industrial Marketing
1325:
838:Dalirazar, Sadaf; Sabzi, Zahra (2020-12-12).
797:International Review of Public Administration
750:Global Business and Organizational Excellence
322:
8:
733:: CS1 maint: multiple names: authors list (
602:, adding demographic and ecological factors.
471:factors include technological aspects like
1332:
1318:
1310:
560:economic, technical, political and social.
329:
315:
18:
1205:
1172:Delivering Results: Managing What Matters
1142:Schmieder-Ramirez, J. and Mallette, L.,
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991:
479:, technology incentives and the rate of
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364:PEST analysis was developed in 1967 by
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1207:10.14293/s2199-1006.1.sor-.ppt0zrs.v1
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592:factors (occasionally rendered as
578:, including environmental factors.
14:
712:Scanning the business environment
1418:Segmenting-targeting-positioning
38:
554:solutions, and transportation.
522:factors. Legal factors include
1053:World Electric Vehicle Journal
1:
1408:Porter's five forces analysis
903:10.1016/j.jclepro.2018.08.111
891:Journal of Cleaner Production
856:10.1080/15623599.2020.1854931
809:10.1080/12294659.2016.1237091
640:Applicability of the factors
572:, adding ecological factors.
946:10.1007/978-3-319-50197-0_1
668:Enterprise planning systems
16:Business analysis framework
1490:
1196:McLeod, Sam (2021-06-29).
388:factors relate to how the
1348:
1271:10.1108/JBIM-03-2019-0130
709:J., Aguilar, F. (1967).
1133:, retrieved 2015-08-21.
1119:Contract Administration
566:, adding legal factors.
1231:Cite journal requires
1028:Cite journal requires
483:. These can determine
370:environmental scanning
351:environmental scanning
1398:Pareto priority index
1378:Managerial grid model
1363:Business Model Canvas
1083:, accessed 6 May 2019
540:health and safety law
284:Business Model Canvas
261:Managerial grid model
198:Competitive advantage
1464:Strategic management
1433:Strategic Grid Model
1066:10.3390/wevj12010046
588:, adding ethics and
481:technological change
355:strategic management
293:Strategic Grid Model
233:Frameworks and tools
108:Rita Gunther McGrath
59:Strategic management
1373:Growth–share matrix
1368:Competitor analysis
1131:SPELIT Power Matrix
1093:Wild, Dave (2023).
608:, adding legal and
270:Growth–share matrix
214: •
207:Performance effects
205: •
196: •
169: •
160: •
153:Alfred Thayer Mahan
151: •
142: •
140:Carl von Clausewitz
133: •
124: •
115: •
106: •
84: •
75: •
66: •
57: •
1358:Balanced scorecard
1341:Strategic planning
1155:Walden J. (2011),
1117:Mason, L. (2018),
993:10.3390/su11215981
552:sustainable energy
524:discrimination law
406:trade restrictions
299: •
295: •
286: •
277: •
268: •
259: •
250: •
248:Balanced scorecard
241: •
216:Generic strategies
77:Strategic thinking
73:Strategic planning
1469:Management theory
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1450:
1413:Scenario planning
1182:978-1-4419-0621-2
1104:978-0-473-66594-4
955:978-3-319-50197-0
762:10.1002/JOE.21935
485:barriers to entry
402:environmental law
343:business analysis
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221:Mission statement
68:Strategic studies
64:Military strategy
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82:Decision theory
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986:(21): 5981.
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297:Strategy map
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167:Sharon Oster
135:Liddell Hart
897:: 197–212.
850:: 167–181.
653:Limitations
590:demographic
489:outsourcing
414:merit goods
377:Composition
243:Five forces
203:Value chain
131:Jim Collins
86:Game theory
1458:Categories
961:2021-03-24
691:References
627:regulatory
493:innovation
477:automation
475:activity,
398:labour law
394:tax policy
390:government
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770:1932-2054
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617:PMESII-PT
426:education
386:Political
1474:Analysis
1388:Mind map
774:Wikidata
662:See also
586:STEEPLED
499:Variants
436:Economic
188:Concepts
55:Strategy
32:Strategy
24:a series
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1343:tools
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633:TELOS
623:STEER
576:STEEP
570:STEPE
564:SLEPT
516:legal
1443:VRIO
1393:OGSM
1275:ISSN
1237:help
1177:ISBN
1099:ISBN
1034:help
950:ISBN
907:ISSN
860:ISSN
813:ISSN
766:ISSN
735:link
717:OCLC
684:VRIO
584:and
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