The document discusses the PESTEL analysis, a strategic tool used to understand the macro-environment affecting organizations through political, economic, social, technological, environmental, and legal factors. It outlines how each of these components influences market conditions and business operations. The objective is to develop students' abilities to apply this analysis for evaluating market dynamics.

1. JUAN L. GANTUANGCO SCHOOL OF ARTS AND TRADES
TRENDS, NETWORKS AND
CRITICAL THINKING IN
THE 21ST
CENTURY

2. JUAN L. GANTUANGCO SCHOOL OF ARTS AND TRADES
I. Grade and Section: 12-HUMSS
II. Subject: TNCT 21ST
CENTURY
III. Topic: PESTEL ANALYSIS
IV.Objectives: This topic develops the
ability of the students to explain the
key components in Strategic Thinking,
particularly the PESTEL Analysis.

3. JUAN L. GANTUANGCO SCHOOL OF ARTS AND TRADES
KEY COMPONENTS IN STRATEGIC
THINKING: PESTEL ANALYSIS

4. PESTEL ANALYSIS
• POLITICAL
• ECONOMIC
• SOCIAL
• TECHNOLOGICAL
• ENVIRONMENTAL
• LEGAL

5. PESTEL analysis - is a
useful tool for
understanding the
political, economic,
social, technological,
legal and environmental
macro-economic
aspects that an
organization operates
in.

6. PESTEL analysis -
is a scan of the
external macro-
environment in
which an
organization exists.

7. PESTEL analysis - It
can be used for
evaluating market
growth or decline,
and as such the
position, potential
and direction for a
business.

8. POLITICAL FACTORS

9. Political Factors.
These include government
regulations such as
employment laws,
environmental regulations
and tax policy. Other
political factors are trade
restrictions and political
stability.

10. ECONOMIC FACTORS

11. Economic Factors.
These affect the cost of
capital and purchasing
power of an organization.
Economic factors include
economic growth, interest
rates, inflation and
currency exchange rates.

12. SOCIAL FACTORS

13. Social Factors.
These impact on the
consumer’s need and the
potential market size for
an organization’s goods
and services. Social
factors include population
growth, age demographics
and attitudes towards
health.

14. TECHNOLOGICAL FACTORS

15. Technological Factors.
These influence barriers
to entry, make or buy
decisions and investment
in innovation, such as
automation, investment
incentives and the rate of
technological change.

16. ENVIRONMENTAL FACTORS

17. Environmental
Factors.
These factors include
all those that influence
or are determined by
the surrounding
environment.

18. Environmental
Factors.
This aspect of the
PESTLE is most
important for
industries such as
tourism, farming, and
agriculture.

19. Environmental
Factors.
Examples of factors to
analyze from an
environmental angle
are climate, weather,
geographical location,
and climate changes.

20. LEGAL FACTORS

21. Legal Factors.
This includes current and
future legal and regulatory
requirements impacting a
product. These factors can
include laws around
consumer protection, labor,
health and safety, taxes and
trade regulations in the
individual countries where
the product will be sold.