Framework

PESTLE analysis

The question it answers

Before entering a new market or industry, which political, economic, social, technological, legal and environmental forces could change the outlook for a business owner?

Origin
Johnson et al., 2008; Whittington et al., 2023
Diagram type
Hub diagram
Level of analysis
Industry
Topics
Strategy & leadershipData & analytics
Chess knight on a glass compass, icon for strategy and leadership

Diagram

PESTLE analysis

Macro environment
Political
Economic
Social
Technological
Legal
Environmental

Pitfalls

Pitfall

Filling all six boxes and stopping. The value is in picking one factor and showing why it is decisive, with evidence from outside the company.

Sources

References

Listed A–Z by author surname, Harvard style. A source with a DOI links to https://doi.org/…; one without links to its page or says plainly that it has no DOI.

  1. Johnson, G., Scholes, K. and Whittington, R. (2008) Exploring corporate strategy: text and cases. Harlow: FT Prentice Hall.No DOISource page
  2. Whittington, R. et al. (2023) Exploring strategy: text and cases. Harlow: Pearson.No DOISource page