What is PESTEL analysis?
PESTEL analysis is one of the prominent analysis tools that allow managers to study various aspects and influences of the general environment surrounding the company in order to exploit these changes as opportunities, or to find solutions to potential threats better than competitors do.
The importance of PESTEL analysis is that it is considered an important tool in relation to making major investment decisions, as investment agencies are usually interested in looking at PESTEL analysis for the country and sector in which they wish to invest, before making a decision.
What is the difference between PESTEL and SWOT?
SWOT analysis is used to assess the company's internal environment by identifying strengths and weaknesses, to focus on enhancing strengths and minimizing weaknesses that it helps in knowing the current situation of the company compared to others.
While PESTEL analysis is used to study the external factors that affect business expansion, that it helps in knowing the impact of all internal and external factors in the company's system and its expansions. Note that the factors in the PESTEL analysis are not described as opportunities or threats; Rather, they are simply things or circumstances that the company can take advantage of or treat as problems, depending on how the company interprets these factors.
That is why business owners resort to using SWOT and PESTEL analyzes together in order to identify all the factors (internal and external) that affect the development and success of the company.
What are the external factors involved in PESTEL analysis?
PESTEL stands for political, economic, social & cultural, technological, environmental and legal factors.
1. Political factors:
Political factors related to the general environment including taxes, customs duties, trade agreements, labor laws, and environmental legislation.
And as for this aspect, political conflicts have a direct and clear impact on all commercial operations. For example, if a country is exposed to some political crises, or the fact of launching a war, these sudden matters and the incoming decisions affect all operations of the company.
2. Economic Factors:
- Growth rates.
- Inflation rate.
- Exchange rate.
- Unemployment rate.
- Labor costs.
- The purchasing power of consumers.
- Price fluctuations.
- Stock market trends.
3. Social and Cultural Factors:
- Health awareness.
- Education level.
- Buying habits.
- Population growth rate.
- Average level of disposable income.
- Population distribution by age and gender.
As the varying demographic and cultural perceptions of customers either positively or negatively affect the company, customer preferences change over time, according to their cultural values, beliefs and attitudes. Demographics such as age, gender, and occupational levels also influence social factors.
4. Technological factors:
Technological factors express the ways in which technology affects the operations within the company where the use of advanced technologies increases productivity and levels of efficiency of the company's performance.
5. Environmental factors:
Environmental factors express the influence of climate and geographic factors on the company.
6. Legal factors:
Legal factors explain the impact of legislation and legal practices that a company must follow and adhere to as they are imposed by regulators.
What are the benefits you get from PESTEL analysis?
- PESTL analysis helps you identify business or personal opportunities, and gives you advanced warning of critical threats.
- PESTL analysis reveals the direction of change within your work environment. This helps you shape what you do, so that you work with change, rather than against it.
- It helps you avoid starting projects that are likely to fail, for reasons beyond your control.
- PESTEL analysis help you eliminate unconscious assumptions when entering a new country, region, or market; by helping you develop an objective view of this new environment.
- PESTEL analysis looks at 'big picture' factors that may influence a potential new business or market decision.
How to do PESTEL analysis?
Firstly, you must gather as much information as possible about the external environment surrounding and affecting your company.
Then you have to choose an appropriate template to do the analysis.
You need a special template for PESTEL analysis, and we offer you a dynamic template rich in diagrams and infographics that will transform the analysis into a visual image to give you a clearer result in an interesting and attention-grabbing way, and it will save you time so you do not need to exert any effort as it is ready to use template and lacks nothing but your touch, and this template is:
Best PESTLE Analysis PowerPoint Templates
It is a distinct template designed to perform a professional PESTEL analysis, characterized by its flexibility and its ability to cover all the requirements of the analysis that you will perform due to its richness with smart elements and ready to use vector icons that are able to adapt to any change you make to it, whether it is in a change in size or color.
This PESTLE Analysis PowerPoint PPT Template includes 90 color themes plus free fonts, and supports 4:3 and 16:9 ratios.
You can't pass by this template without admiring the creativity and care in designing its 35 ingenious slides. The slides of this model vary to provide a wide range of designs to choose what you want and what suits you.
If you do not like the colors, you can change them and choose the colors that satisfy your taste. Besides, to be free to fully adapt and customize these slides.
The importance and the necessity of conducting PESTEL analysis for your company success cannot be denied, that is why we advise you to use the PESTLE Analysis PowerPoint Template to get an effective PESTEL analysis with an eye-catching appearance and to abandon the traditional or free templates that are likely to give you unsatisfactory results that negatively affect your work.