PEST(EL) Analysis

​​PESTEL Framework Template

To use our PESTEL framework template, you need to take 3 steps: add the required data, choose the design, and download the result.

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🤔 How to Use PESTEL Framework Template

This PESTEL framework template is a real find! Take the 3 steps below to get a customized report:

  1. Add the required data. List your key findings in each category.
  2. Choose your favorite design. You can decide which alignment and color palette works best for you.
  3. Download the result. Download the picture for free in docx, pdf, png, or jpeg format.

📒 PEST Framework Definition

PEST analysis is a framework that focuses on the external business environment of a company. It helps to assess the role and impact of several macroeconomic factors on an organization's performance. You can combine it with SWOT or Porter's Five Forces analysis to study both internal and external factors.

PEST is an acronym standing for:

P Political
E Economic
S Social
T Technological

"PESTEL" framework additionally examines Environmental and Legal factors.

What Is the PESTEL Framework?

PESTEL framework is an extended version of a PEST analysis. It is a modern approach that considers more factors and provides a complete picture. It's a rather popular tool in risk management, goal setting, and strategic planning. Specialists also use PESTEL in:

Is It PESTEL or PESTLE Analysis?

PESTEL and PESTLE acronyms have the same meaning and are interchangeable. You can use both types of abbreviations in your research. The only difference is the order of the analyzed factors. You should mention them in the same order as in the chosen acronym.

How Does the PESTEL Framework Template Work?

While performing PESTEL analysis, you need to study each factor separately. The scope of your research is usually defined by the company you evaluate. It sets geographical, legal, temporal, and industry-specific borders. After studying all the factors, you can make a conclusion about the company's current state. For example, to analyze Starbucks, you will need to research multiple countries and markets where it operates.

What Is the Key Outcome of PESTEL Analysis?

PESTEL works best with big or international companies because macroeconomic changes impact them more. The primary outcome of PESTLE analysis is a structured assessment of the current situation and existing trends. It allows one to spot a company's subpar areas and avoid future risks. After summarizing all the factors, you can propose a development strategy for the company.

📝 PESTEL Analysis Framework from Scratch

Here’s a guideline for those who have never done a PESTLE analysis. We recommend analyzing the business factors in such a manner:

  1. Political. Research the current political climate of the country or countries where the company operates. Estimate how the political course and recent agreements influence the business and its product.
  2. Economic. Focus on taxes and interest rates, demand and supply, stock prices, economic recessions, and expansions. Use official statistics and governmental sources at this stage.
  3. Social. Study demographics, population growth, and migration. For more in-depth research, take a closer look at public opinion and consumer behavior. You can examine news sources, online customer reviews, and even popular posts on social media.
  4. Technological. This research chapter shows how technological progress influences your company's performance. Look for press releases or announcements of new technologies.
  5. Environmental. Such factors as climate change or pollution can influence the industry or company. Sometimes there is an inverse relationship between these factors. You need to find and explain it in your analysis.
  6. Legal. Describe how the legal system or newly implemented laws influence your topic. Find the positive or negative impact of these regulations.

✨ PESTLE Framework Template – Example

Let's say you need to analyze Bates Dairy, a British largest independent dairy producer that wants to operate in the USA. Using the PESTEL framework, you can come up with these findings:

  1. Political factors.
    • Highly stable political environment and democracy in the USA.
    • Attractive climate for foreign direct investments.
  2. Economic factors.
    • The USA is the largest global economy with many successful multinational companies.
    • The U.S. GDP is constantly growing.
  3. Social factors.
    • The USA has the world's third-largest population.
    • High salary expectations lead to a lack of a reliable labor force, which immigrants resolve.
  4. Technological factors.
    • The USA is a global technology leader, and numerous headquarters of giant tech companies are located there.
    • There are hundreds of startups due to a good investment climate.
  5. Environmental factors.
    • The USA has diverse climate zones.
    • Extreme weather conditions pose risks to local businesses.
  6. Legal factors.
    • There are federal and state laws in the USA.
    • Intellectual property is under strong law protection.

✍ Pestle Analysis Essay Examples

In the below section, you’ll find a list of essay examples that use PESTLE framework to analyze various businesses. Use them for reference and inspiration.

🖇️ References

  1. PESTEL - Overview, Factors, Examples, Financial Analysis
  2. Is It PESTLE or PESTEL Analysis And What It Means
  3. What Is PEST Analysis? Its Applications and Uses in Business
  4. The Fed - What is macroeconomics?