PESTLE Analysis

What is the main purpose of conducting a PESTLE analysis?

• To create new technologies

• To understand and examine external factors

• To influence government policies

• To analyze internal strengths and weaknesses

What does the acronym PESTLE stand for?

• Political, Economic, Social-cultural, Technological, Legal, Environmental

• Political, Economic, Social-cultural, Technological, Judicial, Ethical

• Political, Economic, Social-cultural, Technological, Legal, Educational

• Political, Economic, Social, Technological, Legal, Employment

Which of the following is NOT a political factor in PESTLE analysis?

• Government regulations

• Political stability

• Tax laws

• Customer likes and dislikes

Economic factors in PESTLE analysis can include:

• Social media trends

• Interest rates and inflation

• Environmental laws

• New technology

Why are socio-cultural factors important in PESTLE analysis?

• They determine the legal framework.

• They are the only factors that can be controlled by a business.

• They influence the behaviors and attitudes of customers.

• They have no affect on a businesses success.

Which of the following best describes technological factors?

• Changes in government policies

• Behaviors of consumers

• New tools, devices, or systems that change how a business works

• Economic trends

Legal factors in PESTLE analysis are concerned with:

• The attitudes of consumers

• Law and regulation changes

• Technological innovations

• The stability of the economy

Environmental factors in PESTLE analysis refer to:

• Tools and technologies

• Impact of climate and natural resources

• Rules and regulations

• Beliefs, values, and traditions of customers

True or false:
Businesses can change external factors without any problem!

• True

• False

Why is it important for organizations to understand their external environment?

• To change the environment to their advantage

• To eliminate all risks

• To adapt to changes they cannot control

• To focus on internal strengths