MBA Pestle Analysis

I am management student and heard a lot about the MBA PESTLE analysis want to know more about this. Will you please provide me all the details about PESTLE analysis and also provide me all the Details of different factors of PESTLE so I get to know more?

[Shaleen]

PESTLE analysis is an important framework for market analysis of any organization gives us a good picture of market growth or decline and facilitates market research, marketing planning and product development.

PESTLE is an acronym for Political, Economic, Social, Technological, Legal and Environmental.

PESTLE analysis reveals the impact of these six external factors on the growth of an organization.

Details of different factors of PESTLE:

Political Analysis

Political stability
Risk of military invasion
Legal framework for contract enforcement
Intellectual property protection
Trade regulations & tariffs
Favored trading partners
Anti-trust laws
Pricing regulations
Taxation - tax rates and incentives
Wage legislation - minimum wage and overtime
Work week
Mandatory employee benefits
Industrial safety regulations
Product labeling requirements

Economic Analysis

Type of economic system in countries of operation
Government intervention in the free market
Comparative advantages of host country
Exchange rates & stability of host country currency
Efficiency of financial markets
Infrastructure quality
Skill level of workforce
Labor costs
Business cycle stage (e.g. prosperity, recession, recovery)
Economic growth rate
Discretionary income
Unemployment rate
Inflation rate
Interest rates

Social Analysis

Demographics
Class structure
Education
Culture (gender roles, etc.)
Entrepreneurial spirit
Attitudes (health, environmental consciousness, etc.)
Leisure interests

Technological Analysis

Recent technological developments
Technology's impact on product offering
Impact on cost structure
Impact on value chain structure
Rate of technological diffusion