What is a PESTLE analysis?

Earlier this week you learned that there are many factors that might motivate a company to expand beyond its home market. These push and pull factors acting on the company are part of an external environment. In this video, you are introduced to one of the models that can be used to analyse such external factors: the PESTLE analysis.

The PESTLE analysis is a strategic tool used for analysing an organisation’s external macro environment. The tool aims to understand the Political, Economic, Social, Technological, Legal and Environmental factors that have an impact upon an organisation’s strategy.

Being able to accurately analyse what influences your company policy is an important step in setting out a global strategy.

Next, you will complete your own PESTLE analysis on the push and pull factors you learned about earlier.