PESTLE Analysis

Political:

How and to what degree a government intervenes in the economy or a certain industry.

• Government policy

• Country’s stability/instability

• Corruption

• Foreign trade policy

• Tax policy

• Education

• Infrastructure

• Health sector regulation

Economic:

Determiners of an economy’s performance.

• Economic growth

• Exchange rates

• Exchange rates

• Interest rates

• Employment rates

• Inflation

• Disposable income

Social:

Demographic characteristics, norms, values, customs etc.

• Trends e.g. population

• Age distribution

• Income level

• Attitudes towards careers, health lifestyle

• Possible cultural barriers

• Local workforce and its willingness to work under certain conditions

Technological:

Regulations and innovations in technology that affect business.

• Technological incentives

• Level of innovation, automation

• R and D activity

• Technological change

• Technological awareness

Influence entering markets, launching products, and whether you outsource certain production activities.

Legal:

Laws

• Discrimination laws

• Anti trust laws

• Copyright laws

• Health and safety laws

• Consumer protection laws

• Employment laws

Important in global business as laws are different in each country.

Environmental:

• Corporate Social Responsibility

• Sustainability