A PESTEL analysis reviews external factors of the environment in which the company operates.
You may also see it called a PEST or PESTLE analysis.
A political scan identifies political or politically motivated factors that impact an organization. Political factors are the most difficult to predict since they can change regularly. When conducting your research, you'll want to consider:
Look for the most current political information and impacts in newspapers and local news sources. Consider adding a geographical location to your search (i.e., United States, Texas, or Europe) to gather country, state, or local information.
Industry and company profiles may offer political insights and will be tailored to specific industries. Most of these reports will offer political analyses at country or regional levels. Because finding these reports can take some effort, we recommend reviewing the specific guides that cover those topics for more detailed steps and resources.
Country reports will provide an overview of political conditions. Please note that these reports are published less frequently than journals and newspapers and will not usually address specific industries.
Search terms you might want to consider when conducting your research include:
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Here are some sample searches to help give you an idea of how to combine your search terms.
An economic scan identifies fiscal factors that directly or indirectly impact a company. When conducting your research, you’ll want to consider:
Look for newspapers and journal articles that are written by or cite economists for the most current news.
Many industry reports will discuss the relevant PESTLE factors that impact each industry. You will need to scan the report as it may not be labeled with the PESTLE headings.
Statistical data can provide insights into trends over time. Government agencies regularly collect macroeconomic data as well as data across industries and within specific geographic areas.
Search terms you might want to consider when conducting your research include:
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Combine economic factors with industries and geographic locations to start your search.
A sociocultural scan identifies social attitudes, behaviors, and trends that impact or drive your organization and target market. When conducting your research, you’ll want to consider:
Documentation of changes in socio-cultural factors can be found in newspapers and journals. These resources will usually provide statistics or an analysis of data trends. They will interpret what the data means about a consumer group or industry.
Industry reports also provide the context of changes in sociocultural factors, providing statistics and analysis of data trends.
The data collected by private researchers and the government comprises raw numbers with many variables. This data can then be analyzed using statistical procedures.
Search terms you might want to consider when conducting your research include:
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Combine sociocultural factors with industries and geographic locations to start your search.
A technological scan identifies technological innovations that may impact a company's operations. When conducting your research, you'll want to consider:
Newspapers and technology journals offer updates on current technological events and changes that impact your industry.
Reports can help you understand the technologies influencing your market and industry, while patents can provide information on inventions and applications related to your industry.
Many industry reports will discuss the relevant PESTLE factors that impact each industry. However, you will have to scan the report as it may not be labeled with the PESTLE headings.
Search terms you might want to consider when conducting your research include:
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Combine technological factors with industries and geographic locations to start your search.
An environmental scan identifies forces that are determined by, or influence, the surrounding area where the company is located or operates. When conducting your research, you'll want to consider:
Start researching environmental factors that impact your organization and industry in newspapers and journals covering environmental issues. You can use these articles to locate relevant reports and new data published by government agencies and organizations.
Government resources can provide information about what's going on with environmental issues at a federal level that could affect your business environment and customer needs.
Many industry reports will discuss the relevant PESTLE factors that impact each industry. You will need to scan the report as it may not be labeled with the PESTLE headings.
Search terms you might want to consider when conducting your research include:
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Here are some sample searches to help give you an idea of how to combine your search terms.
A legal scan identifies applicable laws and regulations your company and industry must abide by. When conducting your research, you'll want to consider:
Legal news and publications can provide information on the current and emerging legal issues and trends that affect your business environment and strategy.
Legal factors may overlap with political factors, but they focus more on the laws and regulations that govern an industry. Explore legal databases and websites for the legislation, case law, and interpretations of the laws and regulations that apply to your industry and market.
Many industry reports will discuss the relevant PESTLE factors that impact each industry. You will need to scan the report as it may not be labeled with the PESTLE headings.
Search terms you might want to consider when conducting your research include:
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Here are some sample searches to help give you an idea of how to combine your search terms.
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