PESTLE analysis is a useful tool for understanding the industry situation as a whole, and is often used in conjunction with a SWOT analysis to assess the situation of an individual business. [pic]
PESTLE stands for “Political, Economic, Sociological, Technological, Legal and Environmental” factors. The questions to ask yourself are:
▪ What are the key political factors likely to affect the industry? ▪ What are the important economic factors?
▪ What cultural aspects are most important?
▪ What technological innovations are likely to occur?
▪ What current and impending legislation may affect the industry? ▪ What are the environmental considerations?
|Factor |Often Comprised Of | |Political |- Current taxation policy | | |- Future taxation policy | | |- The current and future political support | | |- Grants, funding and initiatives | | |- Trade bodies | | |- Effect of wars or worsening relations with particular countries | |Economic |- Overall economic situation | | |- Strength of consumer spending | | |- Current and future levels of government spending...