PESTLE analysis is one of widely used marketing principles can provide an overview for management decisions. It is a mostly used strategic approach which helps the decision givers to evaluate their businesses from different aspects. This PESTLE Analysis Excel Template provides simple framework but comprehensive analysis within your industry.
Each letter represents Political, Economic, Social, Technological, Environmental and Legal factors to understanding external pressures of your business.
If you would like to monitor the macro-environmental factors, PESTLE will be helpful framework to analyze your business performance. When you are in a new business or entering into a new foreign market or new project, PESTLE comes in with other business frameworks like Porter’s Five Forces or SWOT.
P – Political Factors:
These factors focus on the areas about the government impact on the economy or a certain industry or legal issues on the operations. It can be said that, all government influences that effect your business may be political factors.
It may include government policy, corruption, foreign trade, political stability or instability, labor law, environmental law, trade restrictions and so on.
E – Economic Factors:
Economic factors gauge the economy’s performance and these are the keystones of your business. Factors may include exchange rates, economic growth, exchange rates, supply and demand, inflation rates, unemployment rates and so on.
These factors may have a direct or indirect impact on organization profitability. On the other hand, it is related to the consumer purchasing power and changing demand/supply models in the economy.
S – Sociological Factors:
This can include the demographics, population growth rate, age distribution, income distribution, family size, safety emphasis, health consciousness, trending lifestyle attitudes and cultural barriers.
Social aspects of PESTLE Analysis are especially important for marketers when targeting and identifying their business’ customer segment.
T – Technological Factors:
These factors depend on the advancement in technology. It mainly focuses on the profitable operations of the industry and the market favorably or unfavorably. This refers to the level of innovation, automation, research and development (R&D) activity, technological change and the amount of technological awareness that a market possesses.
These factors may influence decisions to enter or not enter certain industries, to launch or not launch certain products or to outsource production activities abroad.
L – Legal Factors:
Legal factors represent taxation and regulations such as health and safety, equal opportunities, advertising standards, consumer rights and laws.
These factors may have some overlap with the political factors. However they include more specific laws such as discrimination laws, employment laws, copyright and patent laws, health and safety laws and so on.
E – Environmental Factors:
Environmental factors are the ordinances also know as “ecological factors”. It may include – weather, climate, environmental policies, climate change, natural disasters, air and water pollution, recycling standards and so on.
These factors have become important for the businesses due to the increasing scarcity of raw materials, pollution targets, doing business as an ethical and sustainable company, carbon footprint targets set by governments.
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PESTLE Analysis Excel Template Features Summary:
Easy to fill PESTLE Analysis Excel Template
Full Print Ready
Informational notes included
No installation needed. Ready to use.
Works both on Mac and Windows
Compatible with Excel 2007 and later versions
Does not include any VBA macros