PESTEL Analysis Guide for Businesses
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ScribdTranslationsPESTEL Analysis Guide for Businesses
Translated by
ScribdTranslationsPESTEL ANALYSIS EXAMPLE
How to do it is limited to reflection on the aspects of the environment that concern him.
the company.
Therefore, the success of the tool lies in the composition of the team that makes it.
exercise. Consider a team with knowledge of the company, participative. Better if it
composes personnel who work in the field. Multidisciplinary. With curious people and
informed about the country situation. Workers from different processes who know what
speaking is vital.
A computer, an Excel spreadsheet, and a group of people ready to define the
The business environment is more than sufficient.
A good practice is to define the type of impact (positive or negative) and whether it will occur at
short, medium or long term.
Political factors
Evaluate how government intervention can affect the company.
Changes in government and their electoral programs
Fiscal policy
Government subsidies
Wars and conflicts
Changes in legislation
Changes in trade agreements
International agreements
Internal and external conflicts
Political movements
An analysis of this type can reveal that the company must implement 'strategies' towards the
politicians of a country so that the laws generated in the government bring benefits. The
taxes that are imposed on soft drinks or tobacco are examples of this and the
companies can generate strategies to remove these measures.
Economic factors
Consider how the national and international macroeconomic environment can affect the
organization.
Employment rates
Economic cycle
GDP
Taxes
Inflation
Economic decisions of other governments
Devaluation and reevaluation of the currency
Trends in distribution channels
Government deficit
Consumer Confidence Index
Financing
Market Protectionism
For example, the imposition of tariffs by Donald Trump's decision on Toyota makes
part of an economic variable to take into account.
Social Factors
Evaluate culture, religion, beliefs, habits, preferences, etc.
Level of education
Fashions
Purchase patterns
Beliefs
Religions
Customer opinions
Opinions or perception of the media.
Lifestyle
Income level
Age level
Here is a convoluted example: Imagine that you have a meat production company.
empty and you want to open a plant on the Asian continent. Considering that the cow
It is a sacred animal in India, would you consider this country to build the factory there?
Technological factors
Today is more important than ever. Every day brings a technological advance and there is no sector
that one cannot benefit from it. In my experience, this is the most difficult aspect and
wasted by everyone. The challenge it brings is that the organization is aware of
What kind of technologies can benefit them.
Machine Learning
New programming codes
New machinery or technological devices
3D printing
Use of energy
Technology replacement
Cloud software
Obsolescence
Internet
Incentives for the use of technologies
Ecological or environmental factors
Evaluate how the environment affects the organization.
Climate change
Consumption of non-renewable resources
Recycling
Pollution
Environmental policies
Liquid gases
Natural risks
For example, health centers, which by law must separate waste.
hospital.
Legal factors or legal issues
Companies must comply with the law no matter what, and it is constantly changing. Sometimes not only
the law of the country where the organization is located applies, the law of the country where it also applies.
he/she wants to be.
Intellectual property
Occupational health and safety
Regulation of sectors
Protection laws
Minimum wage
Licenses
Example of PESTEL analysis of a company
Think of a company that manufactures water purification filters. In the exercise of its
strategic planning, they carry out a PESTAL analysis to determine risks and
business opportunities.
In political variables they consider:
A recent change of president.
The elections for mayors and governors will be held in two years.
The approaches to agree on a trade treaty with Central America.
In economic variables, they define:
Currency exchange.
The effect that the increase in the interest rate has.
The increase in exports from the last year.
Within social variables, they define:
Change in society's mindset towards self-care.
Then in the technological variables:
New technologies
3D printing as an opportunity to optimize costs.
Loss of magnetic information.
In environmental variables they define:
The work to obtain environmental certifications
The work with production waste
Finally, in the legal-legal variables:
The mandatory implementation of the management system in safety and health in
work.
Having done this, the company defines how these factors impact, the expected timeframe, and the
type of impact.
Analysis matrix example
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