What is a PESTEL analysis?


Formerly known as PEST analysis, PESTEL is the short form for a macro-environmental tool used to identify and strategically analyze the external factors that impact a company. The acronym stands for ‘Political’, ‘Economic’, ‘Social’, ‘Technological’, ‘Environmental’, and ‘Legal’ factors. However, based on the company, it can be abridged to PEST or in some cases another letter is ‘I’ can be added to include International factors affecting the company.

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