PESTLE Analysis

What? You mean Pestle and Mortar?

No we don’t. PESTLE stands for Political, Economic, Social, Technological, Legal and Environmental. It’s a well established way of  a business or enterprise to track the wider environment in which they are operating in.

Is it still relevant?

Yes. Well mostly – there has been some debate about that. The problem is that if you undertake the analysis work once you tend to not review it for awhile so it feels static despite the world changing fast. Other methods have been suggested; STEEPLE being one (Social, Technological, Economic, Environmental, Political, Legal and Ethical)

Are there any business methods that can’t be abbreviated to a word?


First rule; if it doesn’t spell anything then it is fundamentally flawed.

I get confused between what falls into what category.

Us too!

As long as you cover all factors AND KEEP IT CURRENT we reckon you will be OK.

Some examples might help.

Of course.

Political – If an election is due and there is public pressure to reduce spending in an area where traditionally there are government subsidies this is a factor!

Economic – Oil prices hit a low; if your business has heavy transportation costs this will start to help.

Social – The rise of E-cigarettes is seen as a healthier and more socially acceptable alternative to traditional cigarettes

Technological – Back to E-cigarettes – the technology behind them (essentially a delivery system) allowed the industry to explode.

Legal – Unless the above were to be made illegal

Environmental – European short-fall of snow affecting ski resorts the most obvious example

Anything else to know?


PESTLE documents can be found here.



Published :

Last Updated : May 12th, 2017