Pestel Analysis

International Journal of Business and Management; Vol. 7, No. 24; 2012
ISSN 1833-3850
E-ISSN 1833-8119
Published by Canadian Center of Science and Education

Developing a Multi-Criteria Decision Making Model for PESTEL
Analysis
İhsan Yüksel1
1

Department of Business Management , Kırıkkale University, Kırıkkale, Turkey

Correspondence: İhsan Yüksel, Department of Business Management, Kırıkkale University, 7140 Kırıkkale,
Turkey. Tel: [phone]. E-mail: [e-mail]
Received: August 26, 2012 doi:10.5539/ijbm.v7n24p52 Accepted: October 12, 2012

Online Published: November 21, 2012

URL: http://dx.doi.org/10.5539/ijbm.v7n24p52

Abstract
Although the conceptual structure and nature of PESTEL (Political, Economic, Socio-cultural, Technological,
Environment and Legal) analysis requires an integrated approach to analysis, the technical framework of
PESTEL does not adequately support such an approach. PESTEL analysis, as it stands, mainly provides a general idea about the macro environmental conditions and situation of a company. This study presents a model to address problems encountered in the measurement and evaluation process of PESTEL analysis. The integrated structure of PESTEL factors and sub-factors were modeled by AHP (Analytic Hierarchy Process) and ANP
(Analytic Network Process) techniques. Relationships between PESTEL factors were determined by DEMATEL
(Decision Making Trial and Evaluation Laboratory). Global weights of the sub-factors were calculated using
ANP. The PESTEL analysis model proposed in the study could determine the extent to which the macro environment of a company provides suitable conditions to achieve the aims of the company.
Keywords: strategic management; macro environmental analysis, PESTEL analysis, ANP, DEMATEL
1. Introduction
Globalization and technological advancements have increased the potential for interaction among people living in different geographic locations. Within this process of

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