PESTEL Analysis

Evaluate and analyze the external forces affecting your organization.

Whether you are familiar with this tool or not you can quickly start using it.

Here is how you start:

• Add additional factors to the framework like Demographics, Intercultural, Ethical and Ecological to better respond to your situation.
• Work individually or invite your team.

STEP 1: Political Factors

Evaluate and monitor the political factors affecting your organization.

How and to what degree a government and the current policies intervene in the economy?

Think about: government policy, political stability or instability in overseas markets, foreign trade policy, tax policy, labor law, environmental law, trade restrictions, etc

You will need to be able to respond to the current legislation. You can also anticipate future legislation, and adjust your marketing policy accordingly to better take advantage of those policies.

STEP 2: Economic Factors

Evaluate and monitor the economic factors affecting your organization.

Evaluate economic factors that can have a significant impact on how an organization does business and also how profitable they are.

Evaluate factors like economic growth, interest rates, exchange rates, inflation, disposable income of consumers, etc

STEP 3: Social Factors

Evaluate and monitor the social factors affecting your organization.

Factors that include shared beliefs and attitudes of the population.

STEP 4: Technological factors

Evaluate and monitor the technological factors affecting your organization.

STEP 5: Environmental Factors

Evaluate and monitor the environmental factors affecting your organization. How is your company trying to be an ethical and sustainable company, reducing your carbon footprint targets set by governments and by other organizations?

STEP 6: Legal Factors

Evaluate and monitor the legal factors affecting your organization.

Evaluate health, safety, equal opportunities, advertising standards, consumer rights and laws, product labeling, product packaging and product safety.

Go over each section and discuss potential risks and opportunities. Using this tool will not help you make decisions if you are not using this information to develop a winning strategy.