Pestle Analysis

The PESTLE technique is majorly used in the Company or the Enterprise analysis. PESTLE includes Political, Economical, Social, Technological and Environmental analysis. This technique is important as the growing importance of the environmental and ecological factors are effecting the growth of the company.

- Political factors include how the government intervenes the working and the economy of the company. What is the area of intervention and where the government policies have the influence?  The laws like labor law, environmental laws, trade and its jurisdiction, tax policies etc.

- Economic growth is related directly with the profit and loss of the company. The economic growth of the company is important as this helps in making the decision on the business expansion and operations. 

- Social factors include the usability of the product produced by the company. Trends and demands related to the product identify how the company operates. This also includes the career attitudes of the employees, less willing workforce, recruiting or firing of the old workers.

- Technological factors include what all technologies are being used to make the product. Compatibility of the technologies being used. User friendliness etc is also taken care of. It mainly includes the languages, platform etc on which the product is required to be created.

- Legal factors include all the things dealing with the laws – like national legislature changes, prospects, company policies in accordance with the government laws etc.

- Environmental factors include Global, National, local issues etc like pressures, movement, wars etc. 

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