Your notes
Potential Impact:
Implication and importance The list below is just to get you started. Remember to put these, and others that you add in the context of your organization or business. For example if you are a small private company the behaviours of a Wall Mart / Tesco or other large international player may well impact on you.If you are a local authority, government changes will change your priorities. In the NHS changes to treatments and public attitudes will also impact etc.

About your organization.How might the factors listed on the left impact your business or part of the organization? H – HighM – MediumL – Low

U – Undetermined
Time Frame:0 – 6 months6 – 12 months
12 – 24 months
24 + months
Type:Positive +Negative –
Impact:Increasing >Unchanged =
Decreasing <
Relative Importance:Critical Important
Political – SWOT
Trading policies
Funding, grants and initiatives
Home market lobbying/pressure groups
International pressure groups
Wars and conflict
Government policies
Government term and change
Inter-country relationships/attitudes
Political trends
Governmental leadership
Government structures
Internal political issues
Shareholder/ stakeholder needs/ demands

Economic – SWOT
Home economy situation
Home economy trends
Overseas economies and trends
General taxation issues
Taxation changes specific to product/services
Seasonality/weather issues
Market and trade cycles
Specific industry factors
Market routes and distribution trends
Customer/end-user drivers
International trade/monetary issues
Disposable income
Job growth/unemployment
Exchange rates
Interest and exchange rates
Consumer confidence index
Import/export ratios
Production level
Internal finance
Internal cash flow

Social – SWOT
Consumer attitudes and opinions
Media views
Law changes affecting social factors
Brand, company, technology image
Consumer buying patterns
Major events and influences
Buying access and trends
Ethnic/religious factors
Advertising and publicity
Ethical issues
Demographics (age, gender, race, family size,)
Lifestyle changes
Population shifts
Living standards
Housing trends
Fashion & role models
Attitudes to work
Attitudes to people doing certain types of work
Leisure activities
Earning capacity
Staff attitudes
Management style
organizational culture
Changes to education system

Technological – SWOT
Competing technology development
Research funding
Associated/dependent technologies
Replacement technology/solutions
Maturity of technology
Manufacturing maturity and capacity
Information and communications
Consumer buying mechanisms/technology
Technology legislation
Innovation potential
Technology access, licensing, patents
Intellectual property issues
Global communications
New discoveries
Energy uses/sources/fuels
Rate of obsolescence
Health (pharmaceutical, equipment, etc.

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Manufacturing advances
Information technology
Waste removal/recycling
Collaboration tools
Software changes

Additional split of information if doing a PESTLE analysis rather than a PEST analysis: Legal – SWOT
Current legislation home market
Future legislation
European/international legislation
Regulatory bodies and processes
Environmental regulations
Employment law
Consumer protection
Industry-specific regulations
competitive regulations

Environmental – SWOT
Environmental issues
Environmental regulations
Customer values
Market values
Stakeholder/ investor values
Staff attitudes
Management style
organizational culture
Staff morale
Staff engagement
Global factors
EU based factors

Remember this is only a tool. Call it what you like – use whatever factors you feel are appropriate. Other variations include: PEST analysis (STEP analysis) – Political, Economic, Sociological, Technological PESTLE/ PESTEL analysis- Political, Economic, Sociological, Technological, Legal, Environmental; PESTEL analysis PESTEL analysis- Political, Economic, Sociological, Technological, Environmental, Labour (Labor) related; PESTEL analysis (rare no references available) PESTLIED analysis- Political, Economic, Social, Technological, Legal, International, Environmental, Demographic STEEPLE analysis – Social/Demographic, Technological, Economic, Environmental, Political, Legal, Ethical SLEPT analysis – Social, Legal, Economic, Political, Technological STEPE analysis – Social, Technical, Economic, Political, and Ecological ETPS analysis – Economic, Technical, Political and Social – Scanning the business environment

PESTLE Analysis on an HR department or other internal function While the PEST or PESTLE analysis is primarily aimed at looking at the external environment of an organization, many HR courses ask students to use the PEST or PESTLE analysis model to look at their own function. In this context we need to imagine that the department (HR) is an organization in its own right and look outside. Factors to include in your analysis may include the following: Political

What is the culture of the organization,
How is the HR function viewed by other functions?
Who are the political champions of HR (or its adversaries)?
Shareholder views
What is the budgetary position of the department,
Is more money available?
Are our customers likely to spend more or less money on the services we offer? What is happening to the financial status of the organization Interest rates
Salary trends in the sector
Other departmental attitudes to HR
Population shifts (age profile)

Living standards
Housing trends
Fashion & role models
Age profile
Attitudes to career
What changes may be coming our way?
What new technology/ systems,
How do we record attendance, performance? how might this change? Use of and encourage home working?
Communications technologies
changes of technology that will increase/ reduce the need for recruitment changes to HR software

What is happening in our sector that will impact what we do? Minimum wage,
Working time,
Food stuffs,
Under 18 working,
Occupational/ industrial Training etc.
What changes will impact the services of the organization
Staff morale
Staff engagement
Need to reduce storage needs
Management attitudes (inside dept/ function)
Organizational culture

PESTLE Analysis for Schools or Education
By rapidbi – Last updated: Sunday, April 19, 2009 – Save & Share – 2 Comments A PESTLE analysis is a tool that can provide prompts to the governors, management and staff involved in the analysis of the changes in the school’s environment that could impact future finance, planning and management decisions. It can enable them carry out a more comprehensive analysis. A PESTLE is usually used in commercial organisations as a part of the strategic development of a business and marketing plan, however a PESTLE analysis can be used as part of identifying the opportunities and threats (swOT) for operational planning within educational and school environments. The PESTLE provides a simple framework within which to consider external factors. PESTLE is used as part of a SWOT for identifying the external factors (OT)

Schools being privatised (like the NHS)
A government initiative creates the risk that the school may fail to deliver the policy or be diverted away from local priorities etc. Changes to the skills required to be a teacher/ tutor
Changes to curriculum with short lead times
Requirement to be self managing
Requirement to be self financing
Central or local government funding decisions may affect school/ establishment finances Closure of a local industry may affect fund raising plans etc. Ability of parents to raise funds for optional activities

The need to run breakfast/ after schools clubs
Ability to invest ‘savings/ surpluses’
Cost of providing resources:
Staff – teaching & support
Basics – books/ paper
Technology solutions laptops etc
Interest rates
Shortages of materials on national/ international markets
Over provision of school places in the area resulting in competition from neighbouring schools The risk of highly valued, key staff moving on to more
‘up and coming’ schools/ academies Social
Decline in birth rate, reflecting national trends
Local population changes (increasing/ decreasing numbers)
Demographic changes may affect likely pupil rolls or the nature of pupils needs e.g. pupils with English as a second language etc. Closure of local firms providing employment
Inability to attract staff
Social networking – blogs, facebook, twitter
Changes to qualifications expected
Integration with local community
Integration of students with special needs
parental preference – an increase in ‘parent power’ has allowed parents more freedom of choice over their child’s school the risk of highly valued, key staff moving on to more up-and-coming establishments Information is accessible to staff anywhere in the world via the Internet Staff were not given enough training or access to effectively change their habits and how they expected information to be made available Technological

Changes to standards/ equipment required
Risk of selecting the wrong technology at times of change (i.e. windows -v- open source) New computer viruses may affect school/ college operations,
Disturbing/ illegal images on the internet may affect ICT security measures etc. Move from paper based books to e-book readers
Computer hardware being out of date
Computer software being out of date
Time to manage IT systems

new legislation may create risks of non-compliance with the law, create new administrative burdens etc Changes to child protection legislation
Raise the age of school leaving age
Raise/ lower the age of starting school. Nursery/ kindergarten Change to school opening hours
Changes to funding of charity based organisations
Health & safety legislation
A new highway layout near the school may create new dangers for pupils etc Waste disposal
Reduction of green space available for activities
Changes to local bus routes

Using a significant amounts of paper and photocopier toner to produce printed information. For a more comprehensive PESTLE article see our pain page.
A PESTLE Template:
Area being reviewed
Is factor positive or negative?

P – N
P – N
P – N
P – N

P – N
P – N
P – N
P – N


P – N
P – N
P – N
P – N


P – N
P – N
P – N
P – N


P – N
P – N
P – N
P – N


P – N
P – N
P – N
P – N

Remember this is only a tool. Call it what you like – use whatever factors you feel are appropriate. Other variations include: PEST analysis (STEP analysis) – Political, Economic, Sociological, Technological PESTLE/ PESTEL analysis- Political, Economic, Sociological, Technological, Legal, Environmental PESTEL analysis- Political, Economic, Sociological, Technological, Environmental, Labour (Labor) related PESTLIED analysis- Political, Economic, Social, Technological, Legal, International, Environmental, Demographic STEEPLE analysis – Social/Demographic, Technological, Economic, Environmental, Political, Legal, Ethical SLEPT analysis – Social, Legal, Economic, Political, Technological STEPE analysis – Social, Technical, Economic, Political, and Ecological ETPS analysis – Economic, Technical, Political and Social – Scanning the organizational environment Choose the acronym that most suits you or your organization. Examples of SWOTs
Strengths and weaknesses
è Resources: financial, intellectual, location
è Cost advantages from proprietary know-how and/or location è Creativity (ability to develop new products)
è Valuable intangible assets: intellectual capital
è Competitive capabilities
è Effective recruitment of talented individuals
è Competitive Advantage
è Brand reputation
è New product

Opportunities and threats
è Expansion or down-sizing of competitors
è Market trends
è Economic conditions
è Expectations of stakeholders
è Technology
è Public expectations
è All other activities or inactivities by competitors
è Criticisms by outsiders
è Changes in markets
è All other environmental condition
è Global Influences
è Nothing

PESTEL Analysis for Macro-Environment

PESTEL Analysis is used for the assessment of macro-environment (environment which indirectly affects business decisions) in which the business operates. Managers have to identify changes in macro-environment that influence their business decisions. These can be identified using PESTEL analysis.

In exams, using this framework ensures that we have gathered sufficient information necessary to analyze the scenario. Other frameworks used are equally acceptable. Below discussed factors are interrelated, points discuss in one factor can be included in other. 1. POLITICAL.

The following points to be considered when evaluating the political environment of the industry or business. 1. Availability of government grants or assistance in the form of cash or other asset perhaps upon fulfillment of some conditions. 2. Award schemes to enforce quality standards.

3. Stable or dynamic political environment i.e. is the government changes frequently resulting in changing policies being implemented by every new government or the country are under martial law or war? 4. Rules and regulations are polite or stringent. This indicates the venerability of the business to legal risk i.e. fines (can be discussed under legal also). 5. Barriers to entry and exit. Example by imposing licensing requirements. 6. Provision of training to workers.

7. Provision of infra-structure, includes sewerage, transportation and energy.

1. Business cycle, identify the stage from which the business is suffering. The stages are depression, recession, recovery and boom. 2. Industrial cycle, identify the stage from which the industry is suffering. The stages are introduction, growth, maturity and decline. 3. Access to resources, finance at reasonable cost, workers at reasonable rates, material economically and easily and equipment with maintenance and spare parts. 4. Customers & suppliers, their availability and bargain power should be assessed. 5. Taxation policies i.e. direct or indirect taxation and rates 6. Inflation, interest and exchange rates.

7. National income can also influence demand for the firm’s product. 8. Level of unemployment in the country, high unemployment may suggest that employer has dominant position and can negotiate low wage rate with workers 9. Stock market condition rising stock market index means rising demand of shares in the stock market may suggest easily availability of finance at cheaper cost.

1. Stakeholders demand, taste and behavior. Example customer, financers and supplier who may not support if your business conflicts their principles. 2. Increasing or decrease population. Increasing population may suggest that higher demand for younger people products e.g. toys while decreasing population suggests opposite. 3. Attitude to work. Are people committed to their work or they just comply with standards. Healthy workers are more productive than overstressed workers. 4. Income distribution, how wealth for the country is scattered among individuals, even distribution may suggest that majority of the people can buy our product while uneven distribution may suggest that majority is poor and minority is rich which create demand for high volume and low priced and low volume high priced products respectively. 5. Social footprint. Impact that business leaves on the society 6. cultural change should be identified e.g. identifying societies leisure activities, changes in customs. 4. TECHNOLOGICAL

1. Stable or robust. Stable environment may suggest longer product life cycle and low level of obsolesces while robust environment suggests otherwise. 2. New product developments may permit doing business more efficiently, cost-effectively and effectively. Employer may move towards automation, this is turn may affect other factors of the framework 3. Innovation leads to break-through in economy and it may affect society as well. Example facebook, youtube are the products which affecting youths behavior.

1. Green house effect has affected the way business trades. There are increasing demands of environment friendly products. Example using hybrid cars and paper bags instead of plastic bags. 2. There are increase emphasis on environmental footprints and sustainability. 3. There are legislations being enacted related to environment. This forces the business to change its policies (the way they do business) and disposal costs to business like restoration of site.

1. Competition law imposes restriction of mergers and acquisitions to promote efficiency gained through competition. 2. Employment legislation protects rights of workers by setting minimum wage requirements, anti-discrimination and anti-harassment legislation. 3. Health and safety legislation to protect workers.

4. Imposition of high import duties to protect home industries. 5. Licensing requirement as discussed above
Students are advised to think as many points as possible so they can quickly identify if they come in the exam scenario. Having thought its impact on business activities can save you lot of time. PESTEL ANALSIS is frequently used framework in exams and in practice. It is worth spent some time on it.

Cite this page

PESTLE Analysis Template. (2016, Apr 16). Retrieved from

PESTLE Analysis Template

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