A PESTLE analysis template is a tool that enables you to understand how some elements might affect your business. PESTLE stands for Political, Economic, Social, Technological, Legal, and Environmental factors. They are external factors that represent threats and opportunities to your organization.
PESTLE Analysis VS SWOT Analysis
PESTLE analysis focuses on factors that are not in the control of a business and can affect risks and opportunities. On the other hand, SWOT analysis focuses on the internal factors of a business that are controlled by the business but can affect its weaknesses and strengths.
When should you do a PESTLE Analysis
Organizations do PESTLE analysis to track, discover, organize, and evaluate the macroeconomic factors underlying the outcomes of the business. PESTLE analysis is useful as it helps inform budget allocation, strategic planning, and market research.
You should do a PESTLE analysis when you would want to make a strategic assessment of where you stand and what you may go through in the future. This is useful when planning organizational change, marketing, product and business development, and research.
The 6 Factors of a PESTLE Analysis
The six factors of a PESTLE analysis are explained below:
Organizations are affected by politically motivated or political factors. For example, trade restrictions and trade policy, government policy, copyright laws, or environmental laws might affect your company. When conducting a PESTLE analysis, you must ask: What political elements could disrupt or benefit our company?
Economic factors can turn out to be detrimental or beneficial for your business. For example, seasonal changes, industry growth, exchange rates, growth rates, unemployment rates, interest rates, and taxation, can have a potential impact on businesses. When measuring the economic factor, you must ask: What economic factors might affect the company’s revenue?
Social trends might affect your customers. For example, beliefs about money, leisure, lifestyles, and immigration can affect your business. When evaluating the social factor, you must ask: How do the customers’ values influence their buying decisions?
Technology can have an impact on your organization’s capability to market services and products. For example, legislation around technology, communications and technology infrastructure, and research and development impact most organizations and businesses. When assessing the technological aspect, ask: How technology might affect our success and growth?
Legal factors can have an impact on the operations of your organization. For instance, labour laws, and consumer laws might affect your organization. When assessing the legal factor, you must ask: How might legal frameworks affect the ability of your organization to operate?
Some industries such as farming, tourism, and agriculture are sensitive to changes in the environment. For example, weather, climate change, and geographic location might affect the business decisions of a company. When evaluating the environmental factor, you should ask: How the environmental changes might hinder or help the operational ability of our company?
PESTLE Analysis Template Word
How do you run a PESTLE Analysis
- Brainstorm the various PESTLE factors
Consider the six PESTLE factors that might affect your business: political, social, economic, legal, technological, and environmental. Hold a brainstorming session or invite your team members to brainstorm and come up with ideas. The goal should be to identify specific ways in which these factors can affect your business and the way you might deal with these factors.
- Rank these factors
Rank the factors based on the level of impact they might have on your organization. Discuss discrepancies in ratings if there are any significant ones. Allow space and time for the people to make up their minds. Adjust the rankings according to the input of your team members.
- Share your analysis
After the analysis is complete, share the completed analysis with relevant stakeholders. Keep the stakeholders informed about what you decide to do with the external factors that can affect your business.
Repeat the PESTLE analysis to keep your processes and strategies up to date. This will enable you to stay informed and knowledgeable about the important factors you need when strategizing the business.
PESTLE Analysis Template Excel
PESTLE Analysis Template PPT
PESTLE Analysis Template Template PDF
PESTLE Analysis Template Online Tools
Use this Miro template to identify the factors that may affect your business.
The Lucidspark PESTLE analysis template enables you to identify and monitor external factors that might impact your business.
Use the ClickUp PESTLE analysis template to prevent risks, prepare for losses, and understand the capabilities of your business. Equip your organization with comprehensive strategy and planning using this template.
Use the Creately online template to collaborate with your team members and export the results of the PESTLE analysis to multiple formats.
Use the Notion PESTLE analysis template to assign properties, add attachments, and write notes.
PESTLE Analysis Best Practices
Some best practices for conducting a PESTLE analysis are:
- Collaborate to identify more risks.
- Use resources and expertise within your organization.
- Use other techniques of PESTLE analysis, such as Porter’s Five Forces, SWOT analysis, scenario planning, or competitor analysis along with PESTLE analysis.
- Use PESTLE analysis to monitor changes in the business environment.
- Avoid obtaining high amounts of information without understanding and analyzing the findings appropriately.
PESTLE Analysis FAQs
How does PESTLE analysis help identify risks?
PESTLE analysis can be used in the identification of external risks in risk management plans. It identifies risks under the headings of Political, Social, Economic, Legal, Technological, and Environmental.
How often should PESTLE analysis be done?
PESTLE analysis should be done every six months to identify macro-environmental changes.
Is pestle internal or external?
PESTLE examines the external environment of a company.
Is PESTLE analysis cost-effective?
PESTLE analysis is cost-effective and provides a deep understanding of alertness of threats, business, and a way to exploit opportunities.