What is a PESTLE analysis, and what is it used for?

PESTLE is a strategic analysis tool used to analyse the external elements affecting a business. It is a commonly used method that provides a comprehensive insight into the 6 major macro-environmental factors that influence business operations and strategy - namely, Political, Economic, Social, Technological, Legal & Environmental. By examining current trends and climates, businesses can understand the specific aspects that currently affect them - or those that will in the future. By doing this, they can inform their short, medium & long-term strategies by building in tactical decisions to exploit or combat them.
It is useful to perform this type of external analysis in combination with a SWOT (internal) analysis. The SWOT technique assesses a business's Strengths and Weaknesses, as well as the Opportunities available to them and the threats facing them. By combining the two analyses, businesses can identify their position in their market and assess how strong of a position they stand in internally to exploit or combat external factors.

JN
Answered by JAMES N. Business Studies tutor

1577 Views

See similar Business Studies University tutors

Related Business Studies University answers

All answers ▸

Provide me with the definition of a Stakeholder and list all the stakeholders in a business.


What are the differences between shareholder and stakeholder?


Explain the difference between a public and private limited company


Explain the principles of netnography and how it can be used to enhance market intelligence


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences