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PESTLE Analysis

Created: 2021-09-15
Author: CIPD Language: English
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Organisational Planning Strategic Planning


A PESTLE analysis is a framework to analyse the key factors (Political, Economic, Sociological, Technological, Legal and Environmental) influencing an organisation from the outside. It offers people professionals insight into the external factors impacting their organisation. The analysis is flexible, so organisations can use it in a range of different scenarios. People professionals and senior managers can use the results to guide strategic decision-making.

This factsheet explores the six elements of PESTLE and outlines what PESTLE analysis is used for, focusing on the scenarios where it’s most valuable. It also provides a PESTLE analysis example (of the retail sector) as well as a ready-to-use PESTLE analysis template. The factsheet concludes by providing some PESTLE analysis tips and looking at the advantages and disadvantages of a PESTLE analysis.

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