The document outlines what a PESTLE analysis is and the factors it considers. A PESTLE analysis examines the political, economic, social, technological, legal, and environmental external factors that may impact a business. It is used to understand the environment a business operates in and how changes in these factors could affect the business's objectives and strategy. The document lists examples of factors to consider under each element of the PESTLE analysis framework.

1. PESTLE analysis

2. Aims
• Prepare a PESTLE analysis for a given
situation and use it to analyse the impact
of the external environment on a firm.
• Evaluate the impact on a firm’s objectives
and strategy of a change in any of the
PEST/PESTLE factors.

3. What is it?
• It’s a way of working out what is going on
‘out there’ so you can then respond to it.

4. POLITICAL
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Environmental protection/legislation
Consumer protection
Government’s attitude
Competition regulation
Advertising standards

5. Economic
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Economic growth
Taxation international trade
Exchange Rate
Employment law
Health and Safety law
Inflation
Consumer confidence
Minimum wage

6. Social
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Income distribution
Demographics
Labour & Social mobility
Lifestyle changes
Attitudes to work and leisure
Education
Fashion and Fads
Health & Welfare
Living conditions

7. Technological
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Changes in physical sciences
Internet
Energy use and costs
Rates of technological obsolescence
New discoveries
Govt and Industry focus on tech
Govt spending on research

8. Legal
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Employment law
Health and Safety
Taxation both corporate and consumer
Other regulations
International trade barriers
Strength of the rule of law

9. Environmental
• How people’s perception and reaction to
environmental issues can affect a
business.

10. Exam tip
• Remember it is not enough to identify the
factor, you must also identify the
advantages and disadvantages as part of
your analysis and recommendation while
referring to the information provided.