PESTLE Analysis
A PESTLE analysis is a useful tool to get a clearer picture of a business's external environment when planning business objectives and strategies. The It examines the factors we have looked at above:
P(olitical)
External forces arising from Government and local government, devolved governments and national politics including pressure groups.
E(conomic)
External forces arising from the state of the economy. If the economy is performing well then businesses will also benefit, but when the economy is in recession business will be negatively affected.
S(ocial)
External forces that arise from the shape and characteristics of society. Changes in society can be significant when making business decisions.
T(echnological)
Changes arising from technological innovations.
L(egal)
Legal forces that affect businesses. This can include legislation passed by the UK or Welsh Governments.
E(nvironmental)
Environmental issues that impact business activity, such as energy choices, pollution, the impact of the weather, climate change etc.