PESTLE Analysis | tutor2u Business
Study notes

PESTLE Analysis

  • Levels: GCSE, AS, A Level
  • Exam boards: AQA, Edexcel, OCR, IB

An effective way to analyse key features of the external environment is to use PESTLE analysis.

The acronym PESTLE stands for:

Examples for each element of the PESTLE framework include:

POLITICAL
Competition policy
Industry regulation
Govt. spending & tax policies
Business policy & incentives

ECONOMIC
Interest rates
Consumer spending & income
Exchange rates
Economic growth (GDP)

SOCIAL
Demographic change
Impact of pressure groups
Consumer tastes & fashions
Changing lifestyles

TECHNOLOGICAL
Disruptive technologies
Adoption of mobile technology
New production processes
Big data and dynamic pricing

LEGAL
Employment Law
Minimum / Living Wage
Health & Safety Laws
Environmental legislation

ETHICAL / ENVIRONMENTAL
Sustainability
Tax practices
Ethical sourcing (supply chain)
Pollution & carbon emissions

Revision Video - PESTLE Analysis

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