Definition
A PESTEL analysis is a strategic framework used by business owners to analyse and monitor the macro-environmental (set of conditions that exist in the economy as a whole) factors that will have an impact on their business.
The acronym stands for:
- Political- how and to what degree a government and their policies intervene in the economy
- Economic- factors that impact how the business is run and how profitable it is
- Social- understanding customers (e.g. beliefs and attitudes) and what drives them
- Technological- how technological advances will affect a business, especially in marketing and management
- Environmental- refers to how environmental factors (e.g. climate change) will affect businesses
- Legal- concerns what a business is and isn’t allowed to do
No comments:
Post a Comment