Strategic Analysis and PESTEL Model Example

Political:

Government, Government Policies, Tax system, foreign trade regulations

 

Economical:

Interest Rates, Demand & supply, unemployment, population income

 
Social:

Society’s values, attitudes, level of education, population demographics

 
Technological:

Changes in technology that affects the ways of working or the types of products or services demanded

 
Environment:

Environmental regulation, consumer’s attitude to products.

 
Legal:

Health & safety rules, employee related law, monopoly legislation, environmental law

The importance of the factors varies to a given company based on its industry and the goods it produces.

 
 Example:

– Consumer companies tend to be more affected by social factors.

– While defense company would be affected by political factors.

– The company who have borrowed high amount needs to focus on Economic factors.