PESTLE Analysis

• What is the purpose of PESTLE analysis?

  To analyze external factors affecting business
• Why is the external environment considered dynamic?

  It contains factors outside a business's control
• What does the 'P' in PESTLE stand for?

  Political
• What does the 'E' in PESTLE represent?

  Economic environment
• What does the 'S' in PESTLE stand for?

  Social environment
• What does the 'T' in PESTLE represent?

  Technological
• What does the 'L' in PESTLE stand for?

  Legal or legislative
• What does the 'E' in PESTLE stand for?

  Ethical and/or environmental
• How does the political environment impact businesses?

  Through government decisions and regulations
• What economic factors can impact businesses?

  Interest rates and exchange rates
• What does the social environment encompass in PESTLE analysis?

  Demographic changes and consumer tastes
• What is corporate social responsibility (CSR)?

  Businesses' responsibility to society and environment
• How does technological change affect businesses?

  By introducing disruptive technologies and e-commerce
• How does the legal environment relate to the political environment?

  Most laws are set by politicians
• What are some legal factors affecting businesses?

  Minimum wage laws and health regulations
• What is the environmental aspect of PESTLE analysis?

  Concerns about pollution and sustainability
• What is ethical sourcing?

  Ensuring suppliers meet ethical standards
• How can PESTLE analysis be applied to a business?

  By identifying external factors affecting it
• What recent political controversy involved Apple?

  Refusal to allow FBI access to iPhone
• How did the economic downturn in China affect Apple?

  It contributed to a decline in sales
• What legal issue has Apple faced regarding taxation?

  Global crackdown on tax avoidance practices
• What ethical issue has Apple encountered with its suppliers?

  Treatment of employees at Foxconn
• What are the six categories of PESTLE analysis?

  • Political
  • Economic
  • Social
  • Technological
  • Legal
  • Ethical/Environmental
• What are the key aspects of the external environment in PESTLE analysis?

  • Factors outside business control
  • Opportunities and threats
  • Dynamic and ever-changing
• How can one practice PESTLE analysis effectively?

  • Choose a well-known business
  • Identify external factors affecting it
  • Analyze each PESTLE category