PESTEL analysis

                          (  Framework for analysing sources of opportunities and threats )

• Political

• Economic

• Social

• Technological

• Environmental

• Legal

Organization can use PESTEL analysis as a framework for analysing the general business environment (Macro - environmental), and the opportunities and threats present in the environment. 

Political  : Government decision and policies such as changes in competition policies and consumer policies

Economic : Impact of the economic cycle (Recession or economic growth), inflation , interest rate , tax rate, foreign exchange rates, 

Social : Demographics, changes in tastes or culture (Demographic changes can affect workforces as well as consumers)

Technological : Changes in technology that affect ways of working, or the types of products and services demanded.

Environmental or Ecological : Green issues such as pollution, climate change, environmental regulation, consumer attitudes to products (environmentally friendly, sustainable etc.)

Legal : Laws and regulation, including any changes to them (eg. employment law, health and safety , data protection)

                                                                                                    (Reference : ACCA text book)