What exactly is a P.E.S.T.L.E. analysis?

4 min readMar 15, 2022

Demystifying the acronym and to use it in business and in life

A strategy is necessary because the future is unpredictable.

— Robert Waterman

Good strategic thinking plays an essential role in a company’s success.

Fortunately, there are many tools available to help guide the process, and one of the most well known is a S.W.O.T. analysis.

You can read how to carry one out in our post on the topic.

One of the assumptions this tool makes is that any threats or opportunities come from external factors (i.e. things outside of your control).

For example, if you’re a soft drinks manufacturer, you might learn one day that the government has decided to introduce a sugar tax to curb obesity.

Undoubtedly, this will have a material impact on your business, and there’s very little you can do about it.

Regardless of what industry you’re in, the risk that something external will impact your business at some point is real.

So how can you better prepare for such a scenario?

One strategic tool you can use is something called a P.E.S.T.L.E. analysis.

What does a P.E.S.T.L.E. analysis involve?




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