PESTLE Analysis

PESTLE analysis, an extension of the earlier PEST analysis, is a framework used to scan and assess the external macro-environmental factors that can affect an organization, organized under six categories: Political, Economic, Social, Technological, Legal, and Environmental. Strategists use the framework to systematically identify forces outside a company's direct control, such as regulatory change, economic cycles, shifting social attitudes, technological disruption, legal requirements, and environmental pressures, that may create opportunities or threats for the business. It is commonly used alongside internally focused tools such as SWOT analysis as a starting point for strategic planning.