PESTLE/PESTEL Analysis - Overview, Advantages, Disadvantages & Examples

01 Mar 2022 2649 share it:

PESTLE/PESTEL analysis, you must have heard about this analysis many times. In today's world, many successful organizations used this analysis for moving ahead and improving. Many organizations take decisions after analyzing the PESTLE/PESTEL.

Everyone knows how internal and external factors affect the company. But mostly external factors affect the company's growth and sustainability more. So, PESTLE analysis helps to know what are those external factors and how they affect the company.

Thus, it is necessary to know all the factors in detail. So, let’s read this blog further and know about the PESTLE / PESTLE analysis.

What is PESTLE Analysis?

PESTLE analysis is a marketing concept that many companies use for their growth and sustainability. This tool helps the organization to keep a record of external factors impacting the organization. PESTLE is the short form for political, economic, social, technological, legal, and environmental.

The above written full form includes the factors that impact the organization. So, let’s know how these factors affect the external environment of the company.

• Political Factors

Political factors usually control the outside of the business. Typical political factors include laws and regulations that either force a business to pursue certain actions or prohibit doing something.

• Economic Factors

Economic factors take various accounts of the organization and know the outlook of each area that can impact the business. This is usually measured by central banks and government agencies. It includes economic growth rates, interest rates, exchange rates, and inflation.

• Social Factors

Pestle analysis also takes account of social aspects linked to the trends and culture of the country. Moreover, consumer behavior is highly influenced by social influences. There are some things to think about while writing social factors such as; cultural aspects & perceptions, health consciousness, populations growth rates, age distribution, and career attitudes.

• Technological Factors

Innovation in the industry is linked to technological factors. The businesses must be up to date with the latest trends otherwise it can be harmful to a particular industry. It includes R&D activity, automation, technology incentives, and the rate of technology change.

• Legal Factors

Many people have this thinking that political and legal are the same. But no, the legal factors define what a business can and cannot do. On the other hand, the political factors tell the relationship between business and government. It includes industry regulation, licenses, and permits.

• Environmental Factors

The ecological impact on the business is due to environmental factors. These are the factors that have limited control but are still considered a part of strategic planning.

Now, you must have got the answer for what is PESTLE analysis with the factors that affect the business. Now, let’s know the advantages and disadvantages of this analysis that impacts the organization.

Advantages and Disadvantages of PESTLE/ PESTEL Analysis

Now, that you get the overview of this analysis, it is necessary to know the advantages and disadvantages of it to know this term better and how it is useful and non-useful for the organization.

Advantages:

• The framework is simple
• It helps in understanding the wider business environment.
• It helps in the development of external and strategic planning.
• It can enable an organization to anticipate business threats and take action to avoid them.
• It tells the organization to know the business opportunities and exploit them fully.

Disadvantages:

• Sometimes, the user of PESTLE analysis oversimplifies the amount of data used for decisions.
• The risk of capturing too much data may lead to "paralysis by analysis".
• The data is used on assumptions and later on, it proves to downfall of the business.
• The repetitive change makes it difficult to anticipate developments.
• The process needs to be repeated regularly to have better growth.

These are the advantages and disadvantages of PESTLE analysis that affect the company. So, make sure to use this analysis very attentively. Also, with the help of this information, you will be able to write an assignment on it effectively. However, many companies as PESTLE analysis example use this analysis to have growth in the business.

Examples for PESTLE/PESTEL Analysis

Here are some examples of analysis for various companies. Let’s have a glance at them:

• Amazon PESTLE/ PESTEL analysis
• Apple PESTEL/PESTLE analysis
• Cadbury PESTEL/PESTLE analysis
• Mc Donalds PESTEL/PESTLE analysis
• Tesco PESTEL/PESTLE analysis
• Nike PESTEL/PESTLE analysis
• Starbucks PESTEL/PESTLE analysis
• Zara PESTEL/PESTLE analysis
• Ikea PESTEL/PESTLE analysis
• Coca-Cola PESTEL/PESTLE analysis
• Adidas PESTEL/PESTLE analysis
• Tesla PESTEL/PESTLE analysis
• Netflix PESTEL/PESTLEL analysis
• Samsung PESTEL/PESTLE analysis
• Esports PESTEL/PESTLE analysis
• NHS PESTEL/PESTLE analysis
• BMW PESTEL/PESTLE analysis
• Ryanair PESTEL/PESTLE analysis
• Easyjet PESTEL/PESTLE analysis
• Lego PESTEL/PESTLE analysis
• Vodafone PESTEL/PESTLE analysis
• Loreal PESTEL/PESTLE analysis
• Pepsico PESTEL/PESTLE analysis
• Nissan PESTEL/PESTLE analysis
• Red Bull PESTEL/PESTLE analysis
• Puma PESTEL/PESTLE analysis

These are examples of pestle analysis. So, you can write the analysis on these companies in the assignment. However, if you are still looking for more information, read this blog further.

Want Some More Information About PESTLE? Go to Experts!

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