{"id":89700,"date":"2023-01-04T14:03:53","date_gmt":"2023-01-04T12:03:53","guid":{"rendered":"https:\/\/factorialhr.com\/blog\/?p=89700"},"modified":"2025-06-30T17:19:42","modified_gmt":"2025-06-30T15:19:42","slug":"pestle-analysis","status":"publish","type":"post","link":"https:\/\/factorialhr.co.uk\/blog\/pestle-analysis\/","title":{"rendered":"What is a PESTLE Analysis?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">A new year is starting and most of us are making balances and setting new goals for our teams. So, it\u2019s a great opportunity to conduct a deep analysis to understand where you\u2019re standing now, and which are your challenges and opportunities to grow. <\/span><span style=\"font-weight: 400;\">But with so many external factors at play, it can be tough to stay ahead of the game. That&#8217;s where a <\/span><b>PESTLE analysis<\/b><span style=\"font-weight: 400;\"> comes in. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">By <\/span><b>understanding the various factors that may impact your organisation<\/b><span style=\"font-weight: 400;\">, you can better plan for your workforce needs, such as recruitment, training, and development, and ensure that you have the right people on board to support your growth plan.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In today\u2019s guide, we explore:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#whatis\"><span style=\"font-weight: 400;\">What is a PESTLE analysis?<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#used\"><span style=\"font-weight: 400;\">What is PESTLE analysis used for?<\/span><\/a><\/li>\n<li aria-level=\"1\"><a href=\"#template\">Free PESTLE analysis template<\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#factors\"><span style=\"font-weight: 400;\">Factors to consider in your analysis<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#Howto\"><span style=\"font-weight: 400;\">How to do a PESTLE analysis (step-by-step)<\/span><\/a><\/li>\n<li aria-level=\"1\"><a href=\"#examples\">PESTLE Analysis Examples<\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u2705 <a href=\"https:\/\/factorialhr.co.uk\/hr-reports\">Elevate Your Strategy with Factorial\u2019s Reporting and Analytics Software<\/a><\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\"><a id=\"whatis\"><\/a><strong>What Is a Pestle Analysis?<\/strong><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">A PESTLE analysis is a <\/span><b>strategic planning tool<\/b><span style=\"font-weight: 400;\"> you can use to evaluate the potential impacts of external factors on an organisation. With a complete analysis, you can <\/span><b>analyse the political, economic, sociocultural, technological, legal, and environmental factors <\/b><span style=\"font-weight: 400;\">that can impact the teams, performance, and operations of your company to mitigate risks and make better decisions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These factors, also known as the &#8220;macroenvironment,&#8221; can present both opportunities and threats. But by conducting a detailed analysis, organisations can <\/span><b>better understand the current and future state of the external environment<\/b><span style=\"font-weight: 400;\"> in which they operate. Based on this, they can develop strategies to mitigate potential risks and capitalise on emerging opportunities.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This analysis can be particularly useful for HR as it helps to<\/span><b> understand the factors that may influence the workforce<\/b><span style=\"font-weight: 400;\">. It allows professionals to identify potential challenges related to changing economic conditions, social trends, or technological advancements, and develop strategies to address these challenges. It can also help to identify opportunities to <\/span><b>attract and retain top talent<\/b><span style=\"font-weight: 400;\">, or to implement new <\/span><a href=\"https:\/\/factorialhr.co.uk\/blog\/talent-development-plan\/\"><span style=\"font-weight: 400;\">talent development plans<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In addition, a PESTLE analysis can be used in conjunction with other planning tools, such as a <\/span><a href=\"https:\/\/www.techtarget.com\/searchcio\/definition\/SWOT-analysis-strengths-weaknesses-opportunities-and-threats-analysis\"><span style=\"font-weight: 400;\">SWOT analysis<\/span><\/a><span style=\"font-weight: 400;\">, to provide a comprehensive overview. This is useful for both long-term planning and short-term decision-making. It can be applied to various levels of analysis, including the industry, the company, and specific teams, projects or initiatives.\u00a0<\/span><\/p>\n<p><img decoding=\"async\" class=\" wp-image-89707 aligncenter\" src=\"https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/01\/04135509\/businesspeople-meeting-plan-analysis-graph-company-finance-strat-1_2_11zon.jpg\" alt=\"pestle-analysis\" width=\"838\" height=\"391\" srcset=\"https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/01\/04135509\/businesspeople-meeting-plan-analysis-graph-company-finance-strat-1_2_11zon.jpg 1500w, https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/01\/04135509\/businesspeople-meeting-plan-analysis-graph-company-finance-strat-1_2_11zon-300x140.jpg 300w, https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/01\/04135509\/businesspeople-meeting-plan-analysis-graph-company-finance-strat-1_2_11zon-1024x477.jpg 1024w, https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/01\/04135509\/businesspeople-meeting-plan-analysis-graph-company-finance-strat-1_2_11zon-768x358.jpg 768w\" sizes=\"(max-width: 838px) 100vw, 838px\" \/><\/p>\n<h2><span style=\"font-weight: 400;\"><a id=\"used\"><\/a><strong>What Is Pestle Analysis Used For?<\/strong><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">By identifying and analysing the political, economic, sociocultural, technological, legal, and environmental factors that can influence an organisation, a PESTLE analysis can help you:<\/span><\/p>\n<ul>\n<li><strong>Develop Long-Term and Short-Term Strategic Plans<\/strong><br \/>\nIf you consider the current and future state of the external environment, your organisation can <b>make informed decisions <\/b>about their overall direction and specific actions.<\/li>\n<li><strong>Identify Opportunities and Threats<\/strong><br \/>\nBy analysing the potential impacts of the PESTLE factors, companies can identify new opportunities for growth and development, as well as <b>threats to the teams&#8217; performance and operations<\/b>.<\/li>\n<li><strong>Mitigate Risk<br \/>\n<\/strong>This evaluation can help you proactively identify and <b>assess potential risks, rather than reacting to risks after they have already occurred<\/b>. For example, if the organisation identifies a potential economic downturn as a potential risk, it may decide to diversify its revenue streams or increase its cash reserves to prepare for the possibility of a downturn.<\/li>\n<li><strong>Enhance Decision-Making<\/strong><br \/>\nPESTLE analysis can help companies make more informed, data-driven decisions because it provides a broad, holistic view of the external environment. This, in turn, <b>allows managers to better plan for the workforce needs<\/b>, such as recruitment, training and development. This framework ensures the organisation has the right people in the right roles to succeed.<\/li>\n<\/ul>\n<p>Download our <strong>free PESTLE analysis template<\/strong> and have a go yourself.<\/p>\n<p><a id=\"template\"><\/a><a href=\"https:\/\/factorialhr.co.uk\/templates\/pestle-analysis-template\"><img decoding=\"async\" class=\"wp-image-90811 aligncenter\" src=\"https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/01\/19124951\/PESTLE-analysis-template-free.jpg\" alt=\"PESTLE-analysis-template-free\" width=\"733\" height=\"251\" srcset=\"https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/01\/19124951\/PESTLE-analysis-template-free.jpg 900w, https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/01\/19124951\/PESTLE-analysis-template-free-300x103.jpg 300w, https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/01\/19124951\/PESTLE-analysis-template-free-768x263.jpg 768w\" sizes=\"(max-width: 733px) 100vw, 733px\" \/><\/a><\/p>\n<h2><span style=\"font-weight: 400;\"><a id=\"factors\"><\/a><strong>Factors to Consider in Your PESTLE Analysis<\/strong><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Before getting started with your PESTLE analysis, it\u2019s important to understand each of the factors involved and the potential impacts you must address. Here\u2019s an overview of the factors to include in your report:<\/span><\/p>\n<h3><strong>Political Factors<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">By understanding the policies and actions of governments, people teams can anticipate how these may impact the workforce and <\/span><b>evaluate policy changes.<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">On the other hand, understanding these political factors can also influence the <\/span><b>attractiveness of different locations for business operations<\/b><span style=\"font-weight: 400;\">. For example, countries with stable political environments and favourable employment policies may be more attractive for expansion or relocation. Your team can consider these factors when evaluating potential locations for new offices or facilities.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Depending on the country you\u2019re operating in, the political factors you should consider can include a wide range of concerns, such as:I\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Tax policies:<\/b><span style=\"font-weight: 400;\"> These have a direct impact on costs, profits, and overall financial performance. For example, an organisation operating in a country with high corporate tax rates may have lower profits than a similar company operating in a country with lower tax rates.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Trade regulations: <\/b><span style=\"font-weight: 400;\">Trade regulations, such as tariffs and quotas, can influence the cost and availability of goods and materials needed to produce. For example, a company that imports raw materials may face higher costs if the government imposes tariffs on those materials.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Government policies and interventions:<\/b><span style=\"font-weight: 400;\"> Government policies and interventions, such as subsidies and regulations, can impact operations and performance. For example, a government policy to promote renewable energy may benefit a company producing solar panels, while a policy to restrict certain types of supplies may negatively impact the production of goods in that industry.<\/span><\/li>\n<\/ul>\n<p><a href=\"https:\/\/factorialhr.co.uk\/get-started\"><img decoding=\"async\" class=\" wp-image-88948 aligncenter\" src=\"https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2022\/12\/21135936\/start-free-trial.jpg\" alt=\"start-free-trial\" width=\"830\" height=\"284\" srcset=\"https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2022\/12\/21135936\/start-free-trial.jpg 900w, https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2022\/12\/21135936\/start-free-trial-300x103.jpg 300w, https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2022\/12\/21135936\/start-free-trial-768x263.jpg 768w\" sizes=\"(max-width: 830px) 100vw, 830px\" \/><\/a><\/p>\n<h3><strong>Economic Factors<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Economic conditions and trends can significantly impact the performance and operations of an organisation. By understanding the economic factors that may affect their business, people teams can anticipate how these could impact the workforce. Some of the economic factors that you should consider are:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Inflation:<\/b><span style=\"font-weight: 400;\"> High inflation negatively impacts costs and profitability. The cost of goods and materials may increase while the prices the organisation can charge may not increase at the same rate. This can lead to reduced profits and competitiveness.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Exchange rates:<\/b><span style=\"font-weight: 400;\"> Changes in exchange rates can impact the cost of imported supplies, as well as the competitiveness of exports.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Interest rates: <\/b><span style=\"font-weight: 400;\">Interest rates can impact financing costs and overall financial performance.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Employment and unemployment rates:<\/b><span style=\"font-weight: 400;\"> Employment and unemployment rates can influence the availability and demand for labour, as well as the overall economic conditions in a particular region or country. For people teams, analysing these factors is key because it\u2019s directly related to <\/span><a href=\"https:\/\/factorialhr.co.uk\/blog\/high-turnover-rate\/\"><span style=\"font-weight: 400;\">talent turnover rates<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">At Factorial, we provide a <\/span><a href=\"https:\/\/factorialhr.co.uk\/blog\/financial-workspace\/\"><span style=\"font-weight: 400;\">financial workspace<\/span><\/a><span style=\"font-weight: 400;\"> to help you <\/span><b>display your company\u2019s financial data<\/b><span style=\"font-weight: 400;\"> to give a complete picture of company costs, allowing you to make better decisions towards the economic factors \ud83d\udc49 <\/span><a href=\"https:\/\/factorialhr.co.uk\/get-started\"><span style=\"font-weight: 400;\">Try it for free for 14 days<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><strong>Social Factors<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Today, organisations must consider several social factors that can affect the workforce and <\/span><b>determine whether a product or service has a market fit<\/b><span style=\"font-weight: 400;\">. On the other hand, these factors are also important to identify the values that matter most for your customers and help you<\/span><b> develop brand guidelines aligned with those values<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are several social factors you should consider in your PESTLE analysis, including:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Population demographics:<\/b><span style=\"font-weight: 400;\"> Age, gender, education levels, and income of a target population can affect the <\/span><b>availability and demand for talent<\/b><span style=\"font-weight: 400;\">, as well as the preferences and needs of potential customers.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Lifestyle trends:<\/b><span style=\"font-weight: 400;\"> Lifestyle trends, such as strong habits related to<\/span><b> health and well-being<\/b><span style=\"font-weight: 400;\">, environmental sustainability, and social responsibility, can impact the preferences and values of customers and employees. These are also important factors to consider when planning <\/span><a href=\"https:\/\/factorialhr.co.uk\/blog\/top-10-employee-benefits-uk\/\"><span style=\"font-weight: 400;\">employment benefits<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Cultural values and norms:<\/b><span style=\"font-weight: 400;\"> Cultural values and norms can change the expectations and <\/span><b>preferences of team members and customers<\/b><span style=\"font-weight: 400;\">, as well as the acceptability of products and services in different markets.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Attitudes towards work:<\/b><span style=\"font-weight: 400;\"> Attitudes towards work, such as work-life balance and job security, can impact<\/span><b> employee satisfaction and retention<\/b><span style=\"font-weight: 400;\">, and are key to planning and developing effective <\/span><span style=\"font-weight: 400;\">employee recognition programmes<\/span><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<h3><strong>Technological Factors<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">As we continue to experience rapid advancements in technology, it is important to consider how these changes can influence operations, products, and services. Therefore, the technological factors that impact organisations can present both opportunities and challenges so it\u2019s key to include them in a PESTLE analysis to take advantage and effectively navigate any issues that may arise and compete in the market.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">From implementing new software and systems to <\/span><a href=\"https:\/\/factorialhr.co.uk\/blog\/training-and-development\/\"><span style=\"font-weight: 400;\">training employees<\/span><\/a><span style=\"font-weight: 400;\"> on the latest technologies, it is crucial to <\/span><b>stay up-to-date on the technological developments<\/b><span style=\"font-weight: 400;\"> that may affect your industry.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Some of the technological factors you can include in your analysis are:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Market trends: <\/b><span style=\"font-weight: 400;\">We are constantly facing new changes in the way we work, and organisations must implement those changes to keep attracting top talent. For example, the rise of artificial intelligence and automation may lead to <\/span><b>changes in the skills and competencies required for certain roles<\/b><span style=\"font-weight: 400;\"> within an organisation.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Cybersecurity:<\/b><span style=\"font-weight: 400;\"> As the reliance on technology increases, so does the risk of cyber-attacks. People teams must ensure that the organisation has strong cybersecurity measures in place to <\/span><b>protect sensitive team members and customer data<\/b><span style=\"font-weight: 400;\"> and remain compliant with local laws. Considering that <\/span><a href=\"https:\/\/www.gov.uk\/government\/statistics\/cyber-security-breaches-survey-2022\/cyber-security-breaches-survey-2022#:~:text=Around%20four%20in%20five%20(82,or%20'fairly%20high'%20priority.\"><span style=\"font-weight: 400;\">just 54% of businesses have acted<\/span><\/a><span style=\"font-weight: 400;\"> in the past 12 months to identify cyber security risks, this is an important factor to consider when conducting an analysis on this particular area.\u00a0<\/span><\/li>\n<\/ul>\n<p><img decoding=\"async\" class=\"wp-image-89708 aligncenter\" src=\"https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/01\/04135635\/close-up-people-checking-papers-with-data-rate-charts-table-workmates-looking-files-plan-business-project-marketing-strategy-colleagues-working-presentation_3_11zon.jpg\" alt=\"pestle-analysis-2\" width=\"823\" height=\"463\" srcset=\"https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/01\/04135635\/close-up-people-checking-papers-with-data-rate-charts-table-workmates-looking-files-plan-business-project-marketing-strategy-colleagues-working-presentation_3_11zon.jpg 1500w, https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/01\/04135635\/close-up-people-checking-papers-with-data-rate-charts-table-workmates-looking-files-plan-business-project-marketing-strategy-colleagues-working-presentation_3_11zon-300x169.jpg 300w, https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/01\/04135635\/close-up-people-checking-papers-with-data-rate-charts-table-workmates-looking-files-plan-business-project-marketing-strategy-colleagues-working-presentation_3_11zon-1024x576.jpg 1024w, https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/01\/04135635\/close-up-people-checking-papers-with-data-rate-charts-table-workmates-looking-files-plan-business-project-marketing-strategy-colleagues-working-presentation_3_11zon-768x432.jpg 768w, https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/01\/04135635\/close-up-people-checking-papers-with-data-rate-charts-table-workmates-looking-files-plan-business-project-marketing-strategy-colleagues-working-presentation_3_11zon-688x388.jpg 688w, https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/01\/04135635\/close-up-people-checking-papers-with-data-rate-charts-table-workmates-looking-files-plan-business-project-marketing-strategy-colleagues-working-presentation_3_11zon-1456x820.jpg 1456w\" sizes=\"(max-width: 823px) 100vw, 823px\" \/><\/p>\n<h3><strong>Legal Factors<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">The legal factors of a PESTLE analysis refer to the laws, regulations, and policies that affect an organisation. These factors can have significant implications for hiring teams, especially if your company has<\/span><b> offices abroad<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Some legal factors that should be considered in a complete analysis include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Employment laws:<\/b><span style=\"font-weight: 400;\"> Companies must ensure that they comply with <\/span><a href=\"https:\/\/factorialhr.co.uk\/blog\/uk-employment-laws\/\"><span style=\"font-weight: 400;\">employment laws<\/span><\/a><span style=\"font-weight: 400;\">, such as those related to wages, working hours, and health and safety.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Data protection laws:<\/b><span style=\"font-weight: 400;\"> In today&#8217;s digital age, it is important to protect sensitive employee and customer data. You must ensure that the organisation complies with data protection laws, such as the <\/span><b>UK&#8217;s General Data Protection Regulation<\/b><span style=\"font-weight: 400;\"> (<\/span><a href=\"https:\/\/uk-gdpr.org\/\"><span style=\"font-weight: 400;\">GDPR<\/span><\/a><span style=\"font-weight: 400;\">).<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Using trusted software to manage staff records and access to information can ensure the privacy of your workforce. Factorial\u2019s all-in-one HR software allows you to share and refresh information while keeping your company <\/span><a href=\"https:\/\/factorialhr.co.uk\/blog\/hr-compliance-uk-gdpr\/\"><span style=\"font-weight: 400;\">compliant with GDPR<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><strong>Environmental Factors<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">As concerns about the natural environment continue to rise, it is increasingly important to consider the impact on the planet. From climate change to pollution and waste, environmental factors can significantly impact an organisation&#8217;s operations, products, and services, as well as the working place for team members.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This should be a significant concern in your company. Not only because it\u2019s good practice and benefits your brand reputation, but also to invest in your employees\u2019 happiness and well-being. In fact, a recent <\/span><a href=\"https:\/\/kiteinsights.com\/climate-school-sign-up\/\"><span style=\"font-weight: 400;\">report<\/span><\/a><span style=\"font-weight: 400;\"> revealed that <\/span><b>61% of employees feel company climate action is important to their job satisfaction<\/b><span style=\"font-weight: 400;\">, so taking the environment seriously is also good to improve talent <\/span><span style=\"font-weight: 400;\">retention<\/span><span style=\"font-weight: 400;\"> rates.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So, to include the environment in your analysis, you should consider the following factors:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Pollution and waste:<\/b><span style=\"font-weight: 400;\"> Consider the impact of the operations on air, water, and land pollution, as well as the generation of waste. This may include implementing waste reduction and recycling programs or investing in technology to reduce the company footprint.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Natural resources: <\/b><span style=\"font-weight: 400;\">Analyse the availability and sustainability of your resources, such as water and timber, that are used to produce. This may include implementing sustainable resource management practices or finding alternatives to resource-intensive processes.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Local environmental regulations:<\/b><span style=\"font-weight: 400;\"> After Brexit, the environmental laws that came from Brussels shifted to <\/span><a href=\"https:\/\/www.legislation.gov.uk\/ukpga\/2021\/30\/contents\/enacted\"><span style=\"font-weight: 400;\">The Environment Act<\/span><\/a><span style=\"font-weight: 400;\">, which became law in 2021. Therefore, in your PESTLE analysis, you must consider these laws to ensure compliance.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\"><a id=\"Howto\"><\/a><strong>How to Do a Pestle Analysis Step by Step<\/strong><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Now that you\u2019ve studied all the external factors to include in your analysis, it\u2019s time to get to work. Put your knowledge into practise with this <\/span><b>step-by-step process for conducting a PESTLE analysis<\/b><span style=\"font-weight: 400;\">.\u00a0\u00a0<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Define the scope of the analysis:<\/b><span style=\"font-weight: 400;\"> The first step is to define the scope of the analysis. This may include identifying the specific business unit or market that the analysis will focus on, as well as the timeframe.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Identify external factors: <\/b><span style=\"font-weight: 400;\">The next step is to identify the external factors that may impact the organisation. These may include political, economic, social, technological, legal, and environmental factors.\u00a0\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Assess impact: <\/b><span style=\"font-weight: 400;\">Once the external factors have been identified, the next step is to assess the potential impact of each factor and write it in the second column.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Develop strategies to address those impacts:<\/b><span style=\"font-weight: 400;\"> Based on the assessment of the impact of each factor, the next step is to develop strategies to address the potential impacts. This may involve identifying opportunities to take advantage of the positive and developing plans for the negative impacts.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Monitor and review:<\/b><span style=\"font-weight: 400;\"> It is important to regularly review and update the PESTLE analysis as external factors can change over time. You must monitor the external environment and update the analysis as needed to ensure that the organisation is prepared for any changes or shifts.<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">If you follow these steps, you can do a comprehensive and effective analysis that will help you understand the larger context in which the organisation operates and devise strategies to benefit from opportunities and address potential issues.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/p>\n<h2><b><a id=\"examples\"><\/a>PESTLE Analysis Examples<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">To help you get started with your analysis, we curated a list of PESTLE analysis examples from world-class companies you can use as a model:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/pestleanalysis.com\/pestle-analysis-tesco\/\"><span style=\"font-weight: 400;\">Tesco<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/www.edrawmax.com\/article\/amazon-pestel-analysis.html\"><span style=\"font-weight: 400;\">Amazon<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/pestleanalysis.com\/apple-pestle-analysis\/\"><span style=\"font-weight: 400;\">Apple<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/panmore.com\/mcdonalds-pestel-pestle-analysis-recommendations\"><span style=\"font-weight: 400;\">McDonald&#8217;s<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/pestleanalysis.com\/pestle-analysis-of-nike\/\"><span style=\"font-weight: 400;\">Nike<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/pestleanalysis.com\/pestle-analysis-of-starbucks\/\"><span style=\"font-weight: 400;\">Starbucks<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/pestleanalysis.com\/pestle-analysis-of-coca-cola\/\"><span style=\"font-weight: 400;\">CocaCola<\/span><\/a><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">As we&#8217;ve seen, a PESTLE analysis is an effective way to evaluate the potential impacts of various external factors on an organisation. By understanding the political, economic, sociocultural, technological, legal, and environmental factors that can affect your company, you can <\/span><b>develop strategies to mitigate risks and capitalise on opportunities<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Factorial HR software makes it easy to conduct a PESTLE analysis because you can <\/span><b>access high-quality data about your company and workforce <\/b><span style=\"font-weight: 400;\">and get a comprehensive view of the external environment.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u2705 Give it a try for <\/span><a href=\"https:\/\/factorialhr.co.uk\/get-started\"><b>free for 14 days<\/b><\/a><span style=\"font-weight: 400;\"> and see how it can improve your growth strategy for the coming year.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A new year is starting and most of us are making balances and setting new goals for our teams. So, it\u2019s a great opportunity to conduct a deep analysis to understand where you\u2019re standing now, and which are your challenges and opportunities to grow. But with so many external factors at play, it can be<a href=\"https:\/\/factorialhr.co.uk\/blog\/pestle-analysis\/\" class=\"read-more\"> [&#8230;]<\/a><\/p>\n","protected":false},"author":160,"featured_media":89711,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[108],"tags":[],"class_list":["post-89700","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hr-tips-en-gb"],"acf":{"topics":"core"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.5 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How to Use a PESTLE Analysis For Your Business | Factorial<\/title>\n<meta name=\"description\" content=\"Discover how a PESTLE analysis can help you identify opportunities and threats. Learn the steps to conducting a comprehensive analysis.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/factorialhr.co.uk\/blog\/pestle-analysis\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What is a PESTLE Analysis?\" \/>\n<meta property=\"og:description\" content=\"Discover how a PESTLE analysis can help you identify opportunities and threats. Learn the steps to conducting a comprehensive analysis.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/factorialhr.co.uk\/blog\/pestle-analysis\/\" \/>\n<meta property=\"og:site_name\" content=\"Factorial\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/people\/Factorial\/100064908455810\/\" \/>\n<meta property=\"article:published_time\" content=\"2023-01-04T12:03:53+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-06-30T15:19:42+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/01\/04140337\/pestle-analysis_11zon.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"820\" \/>\n\t<meta property=\"og:image:height\" content=\"400\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Sofia Terlesky\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@factorialapp\" \/>\n<meta name=\"twitter:site\" content=\"@factorialapp\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Sofia Terlesky\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"12 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/factorialhr.co.uk\/blog\/pestle-analysis\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/factorialhr.co.uk\/blog\/pestle-analysis\/\"},\"author\":{\"name\":\"Sofia Terlesky\",\"@id\":\"https:\/\/factorialhr.co.uk\/blog\/#\/schema\/person\/bd7028db5c2cda151328106ed3cbc64b\"},\"headline\":\"What is a PESTLE Analysis?\",\"datePublished\":\"2023-01-04T12:03:53+00:00\",\"dateModified\":\"2025-06-30T15:19:42+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/factorialhr.co.uk\/blog\/pestle-analysis\/\"},\"wordCount\":2304,\"publisher\":{\"@id\":\"https:\/\/factorialhr.co.uk\/blog\/#organization\"},\"articleSection\":[\"HR Tips\"],\"inLanguage\":\"en-GB\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/factorialhr.co.uk\/blog\/pestle-analysis\/\",\"url\":\"https:\/\/factorialhr.co.uk\/blog\/pestle-analysis\/\",\"name\":\"How to Use a PESTLE Analysis For Your Business | Factorial\",\"isPartOf\":{\"@id\":\"https:\/\/factorialhr.co.uk\/blog\/#website\"},\"datePublished\":\"2023-01-04T12:03:53+00:00\",\"dateModified\":\"2025-06-30T15:19:42+00:00\",\"description\":\"Discover how a PESTLE analysis can help you identify opportunities and threats. 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