The PESTEL Analysis

Augment the PEST analysis by bringing Legal and Environmental factors into consideration.

Based on the work of Francis Aguilar on competitive advantage and business environment strategy, PESTEL is an augmented version of the classical PEST Analysis. Here, both the Legal and the Environmental factors are taken into analytical consideration.

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What's it about?

There are many variations of PEST that can bring other factors into consideration, in PESTLE Analysis, the legal and environmental factors are also evaluated:

Legal: These factors have to do with the legislative and procedural components of an economy. Also, this takes into account certain standards your business might have to meet in order to start production or distribution.

Environmental: These factors include all those having to do with the geographical location and the related environmental aspects of a business.

Other noteworthy variations of PESTLE include:

  • LONGPESTLE: Local, National, and Global versions of PESTLE.
  • PESTLIED: Political, Economic, Socio-Cultural, Technological, Legal, International, Environmental, Demographic.

Who should use it

PESTLE Analysis is for any stakeholder and manager who needs qualitative information from different points of views to make meaningful assessments for informed decisions. Ideal for consultants, researchers, strategic planners and C-level executive corps.

Who made it?

Francis Aguilar

Francis J. Aguilar (1967) is the originator of many of the earliest tools and techniques for “Scanning the Business Environment.” PEST Analysis and its augmented variations such as PESTLE Analysis are also attributed to the strategic planning and general management genius of this Harvard professor.

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