Ace Your Business Courses: A Step-by-Step Guide to Writing a PESTLE

The external factors influencing your organization's success are crucial in business. The PESTLE analysis is a valuable approach for assessing these factors.

This approach assists firms in identifying and analyzing external factors that impact their operations. These factors involve political, economic, social, technological, legal, and environmental aspects. Mastering the PESTLE analysis can provide valuable insights for informed business decisions.

Here, you will learn about the PESTLE analysis, how to write one, and where to get professional help writing a related essay.

What is PESTLE Analysis in Simple Words?

A PESTLE analysis is a model businesses use to analyze macro-environmental factors. PESTLE is an acronym representing Political, Economic, Social, Technological, Legal, and Environmental elements that affect a business externally.

It is sometimes combined with the SWOT analysis to evaluate the external elements influencing an organization's work.

Several acronyms refer to PESTLE. If you look closely, people interchange the letters in the name, but the meaning doesn't change. Sometimes, letters such as D (demographics) and I (intercultural) are added to expand the research.

The meaning may not be similar. The result, however, is to help businesses check the external forces affecting them during market research.

PESTLE Acronym Variations

There are a lot of variations for PESTLE, and here is a quick round-up:

• PEST: This is the original approach, primarily used in place of PESTLE. It represents the Political, Economic, Social, and Technological factors.
• PESTEL: It's the same as PESTLE, dealing with the same factors but spelled differently.
• LoNGPESTLE: It is an extended form of PESTLE involving geographic categories.
• SLEPT: It represents the Social, Legal, Economic, Political, and Technological elements.
• STEPE: It represents Social, Technological, Economic, Political, and Ecological factors.
• STEEPLE: This version represents the external environment's social, technological, economic, ethical, political, legal, and ecological components.
• DESTEP: This acronym means Demographics, Economic, Social, Technological, Environmental, and Political.
• STEEPLED: It combines STEEPLE and DESTEP.
• PESTLIED: Besides PESTLE, it also involves International and Demographic factors.
• SPELIT: It includes Legal and Intercultural factors in PESTLE.

Why Use the PESTLE Analysis?

A PESTLE analysis is vital in today's unpredictable business world. Natural disasters break out without warning, while global pandemics endanger human lives. Wars ignite (and the smell of it scares), uncapped inflation rates arise, and emerging technologies show us the disruption door.

External factors will always influence the business environment as long as the business is operating. That already gives more reasons to conduct a PESTEL analysis. The current events are already sending uncomfortable chills and fever to organizations, hence the cause of worry. It makes no difference how well-established your company is.

Our analysis specialists in the college essay writing services sector believe that PEST analysis may assist in dealing with such intimidation. It assists businesses in assessments and strategic planning to navigate the foreseen impacts.

It also helps turn threats and other weakening external forces into opportunities. If they cannot be transformed into opportunities, the study will assist in creating suitable countermeasures.

A PEST analysis provides a platform to evaluate the external factors challenging your enterprise. It also guides your strategic decision-making to counteract the detected hurdles.

PESTLE Analysis Components

As stated before, PESTLE is an acronym with six components: Political, Economic, Social, Technological, Legal, and Environmental. Below is a breakdown of each element and its involvement. Under every factor, you can identify some of the issues to analyze based on your business's situation.

Political Factors

Political factors involve government policies and actions that impact a business's operations. These could include a change in governance, new tax policies, more or less trade restrictions, or a stir in a country's political stability.

For example, new tax laws or trade tariffs on Chinese imports will impact a company's operations and profitability. So, enterprises must check whether the political environment favors their strategic framework.

Other effects of political forces include war. For example, we are currently witnessing the ongoing Russia-Ukraine battle and the Israel-Gaza conflict. Businesses facing such turmoil will have to shut down if they don't trade anything involving the war.

When examining the political factors issues, our political science essay writing service team came up with the following examples:

• Legislation
• Coalitions and elections
• Government policies
• Tax policy
• Trade sanctions and restrictions, imposed especially on foreign companies
• Political stability in the region
• War, terrorism, and military actions
• Trade tariffs and subsidies
• Freedom of expression primarily via media outlets
• The labor policy
• Law on intellectual property

Questions to Ask Under Political Factors

• Is the political environment stable in the region in which you are operating?

• Which laws, political groups, or policies will affect how you pursue business opportunities?

Economic Factors

Economic factors in the external environment are crucial since they influence your finance docket. These may involve economic growth, interest rates, inflation, and the general economy's health. For example, if you are facing high inflation rates, that profoundly affects how consumers purchase, eventually affecting sales.

If exchange rates are favorable, export competition will rise. Understanding the factors in this economic category will help you plan financial strategies to navigate the wavering economy.

Our economics homework help gurus provided the following list when checking the economic factors:

• Exchange rates and interest rates
• Economic growth (especially the GDP factor)
• Taxation
• Inflation
• Wages and labor costs
• Businesses' and consumers' disposable income
• Financial markets
• Supply and demand forces
• Raw materials and commodity prices
• Investments and consumer spending tendencies

Questions to Ask Under Economic Factors

• What impact do the enumerated economic conditions have on your company's strategy?
• Which factors will lead to improvement, and which ones will deteriorate your business strategic planning?

Social Factors

Social factors in PESTLE analysis are cultural norms and behaviors that drive consumer demand. Such issues include the level of education, demographics, lifestyle, and cultural trends.

For instance, countries or regions with aging people may need more healthcare services and products. On the other hand, a young population will focus on sustainability efforts being relayed by the business or organization. They may favor eco-friendly products or services that serve longer durations.

Considering social factors in the PEST analysis will help you understand current and upcoming social trends. You will also be able to pinpoint which products and services resonate with the spotted consumer attitudes and preferences.

According to our sociology homework help department specialists, understanding social elements will help you create stronger corporate social responsibility plans.

Take into account the following while examining the social factors:

• Population growth rate
• Age distribution
• Family sizes and dynamics
• Health
• Wealth distribution and living standards
• Consumer behavior and attitudes
• Consumer spending habits
• Career choices
• Religious, ethnic, and cultural trends
• Diversity and attitudes towards your business and the government

Questions to Ask Under Social Factors

• How do consumer attitudes affect their buying habits?
• At what rate is the customer behavior changing? How does that influence your strategic planning and implementation?

Technological Factors

Slight or significant technological changes can affect your business's position and operations. Some recent technological factors involve artificial intelligence, the cryptocurrency surge (which can also be an economic factor), cyber security issues, and working-from-home trends.

Consider how technological advancements will provide opportunities or become threats to your overall operation. Technological innovations will affect:

• How you produce goods and services
• How you distribute the products
• How you communicate with everyone involved, from workers to consumers

Under technological factors, here is what you can check in the external environment:

• Manufacturing and distribution
• The overall communication structure
• Emerging technologies directly or indirectly affecting your business
• Technology's life cycle
• IoT (Internet of Things)
• Automation
• The handling of intellectual property
• Training for new technology
• Technological development awareness
• The ROI for new technologies

Questions to Ask Under Technological Factors

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• How fast are new technologies emerging? What opportunities or threats can we detect?

• How will the new technology affect how your business operates?

Legal Factors

In PESTLE analysis, political forces and legal factors are closely related. The difference lies in what influences the other. Political adjustments will affect the legal docket and dictate regulation trends in the targeted regions or countries.

Legal factors are the laws and regulations that influence your business. New or updated laws and regulations can affect products, services, or production methods. For this reason, it is crucial to check the effects of local, state, and federal legislation on your company and target market.

A good example is when labor laws change, they will affect your hiring practice. Also, if a law abolishes some of your products or services, you will be forced to terminate or shift to a new region.

Under legal factors, you can check on the following:

• Consumer protection laws
• Health and safety regulations
• Production safety regulations and standards
• Labor and employment laws
• Patenting, copyright, and intellectual laws
• Laws governing equal opportunities
• Data protection laws
• Advertising rules and standards
• Licenses and permits
• Competition and anti-trust laws

Questions to Ask Under Legal Factors

• Which laws and regulations should we consider in our business? How do they enhance or impede business activities?
• How is the regulatory environment? Which regulation trends are likely to come up in the future? How do you think they will influence your business direction?

Environmental Factors

Environmental factors, also known as ecological factors, involve issues related to climate change, weather, and health crises. Nowadays, environmental regulations are tighter than before since most parts of Mother Earth are experiencing ecological crises.

Laws governing pollution, conservation, and waste management affect environmental factors. That means they also have a say in matters regarding your business. Health situations like the recent COVID pandemic altered how business is conducted. That is how working from home (mentioned under technological factors) became a norm.

You have also heard of wildfires in forests, especially during summer in places like California. The BBC's documentary Earth from Space has explained more about this effect, among other environmental changes. They also happen in other forests, such as Brazil's Amazon and the Congo's tropical forest.

The environmental science homework help department suggests that natural disasters, including rising oceans and hurricanes, have short-term and long-term impacts on businesses.

When looking into the environmental factors, you can consider the following:

• Weather and climate change
• Pollution, especially the greenhouse emissions
• Natural disasters
• Use of renewable energy
• Recycling and waste management
• The business's physical location and accessibility
• Sustainability efforts and ethics
• Access to raw materials

Questions to Ask Under Environmental Factors

• Which environmental factors are impacting our business?
• How are the changing environmental regulations, and how are they impacting your business?

We have reviewed the PESTLE factors and their respective responsibilities. Now that you know the components involved, let's examine how to conduct the PESTLE analysis whenever an assignment arises.

How Do You Do a PESTLE Analysis Step by Step?

Our guide provides a seven-step process for writing a PESTLE analysis (or PESTEL/PEST).

Our essay assignment help experts use these steps and the tips below when writing a PESTLE analysis wherever needed. When tackling the external factors affecting a business, they can be in a sole PESTLE analysis essay or part of a business plan assignment help task.

1. Setting Up Your Objectives

If you want to set realistic objectives for your PESTLE analysis, you need to answer the following question honestly: why are you doing a PESTLE analysis? Clarifying this question will guide the rest of the process. Applying PESTLE analysis effectively in an enterprise requires more than simply learning the technique and completing a task.

Some organizations are eager to seek a competitive advantage. Others want to know the opportunities and threats when testing a new product or service. A PESTEL analysis will help you learn more about such issues and the best ways to maneuver and manipulate them.

Verify what you want to check using the PESTLE model. This will help establish a suitable guideline for the whole process.

2. Preparation

Once your goals are defined, it's time to prepare for the data collection and analysis process. Invest some time working on your skills, which will be crucial for gathering and interpreting the data. First, establish how you will conduct the process.

A team will always do a better job gathering information and offering better insights than your own analysis. Contact the people who will be involved in the process and know where you are going to get the information. Also, note down the deadlines for the information collection.

Afterward, you can organize in-person or virtual meetings with those involved and present your grand plan. Remember to tell them the reason behind the analysis and the success metrics that will be used to gauge the results.

3. Data Collection

With everything set up in steps 1 and 2, it's time to gather the data. Depending on your sources, this process will be tedious and involve much work. As you collect the data, create a PESTLE analysis template to help you record it.

Divide each element represented by the acronym into segments. That will help you quickly fill in data based on the key factors you examine under each component.

Since data collection is tiresome, the best advice is to approach each component individually. If you are getting data that suits multiple components, fill in appropriately based on the segments under each.

For example, if you investigate political factors, create subcategories under them, such as government policies, tariffs, trade restrictions, etc. Afterward, you can simply fill in the appropriate spaces based on what surfaces.

4. Analyzing the Collected Data

After gathering the information, examine the macro-environmental factors influencing your business enterprise's plans. Later, develop a strategic framework that will help mitigate or manipulate those factors.

Only some things you have collected will be necessary. Also, different factors in each PESTLE analysis component will have a different impact. Use models like Porter's Five Forces or the 7S Model to determine the significance and scope of the effects. They aid in guiding a better strategic analysis.

Using one or a combination of such models will aid in:

• Realizing how the external forces interact
• Seeing the missed parts, especially when it comes to threats and opportunities
• Determining what your organization possesses when it's time to tackle the spotted issues

Most of the data you collect will be textual. So, you can use AI to help in analyzing. Just feed the collected and arranged data to one of the Generative AIs and see what comes up. You should, however, be wary of using such a method since AI tools store the information you feed.

AIs are designed to collect the details you enter (that includes your sensitive information) and use them elsewhere, especially in training.

5. Formulating a Response Program

At this step, you have the data and the analysis with you. Using what you have gathered and realized in your strategic business planning process, create a strategy. Come up with a program to help pursue the identified opportunities and tackle the identified threats.

The collected data should guide the response program you develop and the conclusions drawn from the analysis. Once you determine what to do, jot that down into actionable steps.

6. Putting the Response Program into Action

Once you have the actionable steps under each PESTLE component, it's time to take action. Use a project management tool or formula corresponding to your favored approaches to tracking assignments and deliverables.

Whichever method you choose, ensure you know the responsibilities assigned to each activity and the outcomes you hope to achieve. Some will go for project boards, others will have a task sheet, etc. If you have no idea here, research the best apps to help manage your project.

7. Assessing and Modifying

Please note that things change as you act on the strategic plans deduced from your PESTEL analysis.

New technology can arise and dictate new ways of doing things, while political forces can change the trading environment. Economic fluctuations may also affect customer spending habits. More alterations can also result from aging and cultural and religious beliefs.

So, learn to adapt and be flexible as you execute your organization's strategic plan. Realize early enough that imperfections arise to help you quickly adapt as you work on your competitive advantage.

Tips for Writing a Comprehensive PESTLE Analysis

We have reached this point by addressing PESTLE analysis (or PESTEL analysis), the issues under each factor, and how to conduct it. The following advice will assist you in making the most of and using up all the relevant elements when working on an analysis based on this model.

• Use a PESTLE analysis template with a clear framework: We have explained how to divide each PESTLE component into sub-sections to facilitate information filling. A structured approach will help you collect, organize, and store as much information as possible.
• Prioritize crucial factors: In your analysis, note the most critical issues that heavily impact your organization.
• Incorporate visuals: Employ charts, infographics, or other relevant diagrams to enhance understanding of your key findings.
• Note the interrelationships: Various factors have interrelated issues. For example, a logistics threat could include economic and technological factors. Realize the interactions here and how they influence each other to develop a detailed analysis.
• Be specific: A comprehensive PESTEL analysis should include concrete evidence supporting the present findings. So, have your analyzed collection supported by relevant information.
• Stay updated: Emerging trends will constantly occur. Don't rely on research from two years ago to find solutions for today's problems.

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What Is a PESTLE Analysis Example?

A PESTLE analysis example is an article or report describing the external factors evaluated that have an impact on a business enterprise. Here is a short example of a Body Shop business PESTLE analysis.

PESTLE Analysis Example: Body Shop Business

The following are some of the major variables affecting Body Shop's operations:

• Political Factors: The implemented trade restrictions between the UK and the EU have increased the importation cost from EU countries, thus affecting overall profitability. A change in ethical standards could also decrease the quality of British cosmetics.
• Economic Factors: There are inflation changes. The company is dealing with rising variable costs due to its 2000 employees in the UK. On the positive side, skincare product usage will increase during summer, hence more revenue.
• Social Factors: The demand for skin health products has surged due to aging, changing lifestyles, growing environmental consciousness, and an increasing interest in mental and emotional wellness.
• Technological Factors: There has been an increase in online orders, and people are spending on new and innovative products. There is also a huge desire for customized beauty and grooming solutions.
• Legal Factors: Restrictions on the use of chemicals in cosmetics have affected the production process. The company must also adhere to strict health and safety regulations that protect consumers while using the cosmetics.
• Environmental Factors: 47% of clients consider plastic pollution a critical environmental issue. So, the company faces a learning curve as it develops plastic-free packaging to promote a greener environment.

Forces that Affect Body Shop

• The beauty market is growing rapidly, which makes it more competitive.
• Competition in the beauty and personal care sectors is intensifying as consumers look for newer items.
• Customer loyalty decreases due to technology growth.

There are more examples and resources online for well-detailed PESTLE analyses. You can access publicly available information by searching the archives of listed companies to expound your experience before working on a PESTLE analysis essay.

PESTLE Analysis Pros and Cons

Using the PESTLE analysis implies witnessing both its benefits and drawbacks. Here are the key insights to note as you use the model.

What Are the Benefits of PESTLE Analysis?

• It's a straightforward strategic framework you can efficiently utilize for strategic planning.
• It helps understand the wider business environment and how changing events affect business opportunities and operations.
• It is best at identifying opportunities and threats. That means it helps formulate plans to manipulate and mitigate them.
• PESTEL analysis provides a granular view of external factors when breaking them into subcategories.
• It works well with other frameworks like the SWOT analysis.

What Are the Limitations of Using PESTLE Analysis?

• There is too much data to deal with, which can sometimes be overwhelming.
• Even after working on an analysis, you will still do it again if other trends emerge.
• Due to changing trends, your PESTEL analysis will always be time-limited.
• You need more information to improve the model's accuracy.
• This framework only explores external factors. For polished results, you must combine with models such as SWOT.

Combining PESTLE and SWOT Analysis

One of the abovementioned drawbacks is that the PESTEL analysis only examines external influences. Therefore, a framework that checks internal affairs is crucial to analyzing overall business welfare.

That's when the SWOT analysis comes in handy. Using both will give you a better strategic thinking avenue as you seek to expand or have a competitive advantage.

What is PESTLE and SWOT analysis? It's an analysis that studies a business internally and externally using the PESTLE and SWOT frameworks.

SWOT centers on the internal components that a business can control and affect its opportunities and threats. PESTLE analysis gives information on macro-environmental elements that create opportunities or present obstacles for a business.

With PESTLE analysis only, you may have insufficient data for better analysis and well-informed strategic planning. Using both will reward you with better internal and external insights, crucial for developing a strategic plan to grow your business.

Take your time to study our Tesla SWOT analysis essay to grasp how the SWOT analysis model works. Combining it with the PESTLE analysis example we shared here will give you the correct glimpse of each analysis model's results.

If your PESTEL analysis assignment also needs to consider internal business factors, contact our SWOT analysis homework help team for professional assistance.

Tip: SWOT analysis is suited for new businesses seeking a foothold in the industry. SWOT and PESTLE analysis better serve organizations that want to expand.

To Finalize

A PESTLE analysis will help you gain insights into a business's external environment. With such a framework, you will have the proper direction for developing strategies for capitalizing on opportunities and reducing risks.

However, it is critical to note that the PESTEL study is only one part of the picture. By integrating PESTLE analysis with SWOT, you can gain a more comprehensive view of your business's strengths, weaknesses, opportunities, and threats.

By following the steps in this guide and utilizing our expert academic support, you can confidently write a compelling PESTLE analysis college essay.

Frequently Asked Questions

1. Is PESTEL Same As SWOT?

No. PESTEL study focuses on external factors beyond an organization's control that influence its operations. SWOT analysis looks into factors in the internal business environment that the enterprise controls that impact its opportunities and threats.

2. How Do You Write a PESTLE Analysis Essay?

1. Set up your objectives
2. Research and prepare
3. Collect the required data
4. Analyze the collected data
5. Create a PESTLE-based outline for your essay.
6. Write your essay, ensuring you cover all the essential points.
7. Proofread, modify, and format the essay according to the essay requirements

3. What Questions Should I Ask in a PESTLE Analysis?

When doing a PESTLE study, concentrate on concerns in the political, economic, social, technical, legal, and environmental dimensions. Check the PESTLE analysis step procedure we shared to help brainstorm the right questions to ask under each component.

4. What is PEST Analysis in Education?

PEST analysis in education involves using the model to identify the external factors that affect an institution. It also involves giving students PESTEL analysis assignments to help them grasp the framework's concept. If you need PESTLE analysis assistance, our essay writers will help you craft high-quality insights.

5. Who Can Help Me Write a PESTLE Analysis Essay?

HomeworkMarket essay writers are experts in PESTLE analysis. We offer expert guidance on the framework matters and deliver well-written essays with a personalized approach. Get a well-written PESTLE analysis by contacting our professional team anytime.