“The future belongs to those who prepare for it today”

– Malcolm X

What is PESTLE analysis?

PESTLE analysis is one of the best ways to analyze the macro-influencers and trends of an industry. PESTLE is a mnemonic, which stands for Political, Economic, Social, Technological, Legal, and Environmental. Trend analysis is becoming more important as macro-influencers are increasingly disrupting and shaping industry dynamics.


PESTLE Analysis Framework



How do you conduct a PESTLE analysis?

PESTLE analysis can be as simple as a brainstorming session or as complex as a full project to scan all the major trends and analyze the potential impacts on the industry. Some companies, such as DHL, have teams that focus on trend analysis and publish their findings. Check it out here.

When conducting a PESTLE analysis, evaluate the most essential Political, Economic, Social, Technological, Legal, and Environmental trends and dynamics that will affect the particular industry. Often, the analysis focuses on the short to mid-term (1-5 years) and long-term (6-15 years). Furthermore, if your company operates in multiple countries or regions, it may be insightful to conduct a PESTLE analysis by country or region.

In conducting the analysis, utilize the diagram below to generate ideas, prioritize the top 3 trends within each PESTLE category, and think through the implications for your business and strategy. Some trends may represent threats, while others may represent opportunities. Utilize the PESTLE Analysis Worksheet in the PowerPoint below.

PESTLE Analysis Framework Topics


To get you going on your PESTLE analysis, download the free and editable PESTLE Analysis PowerPoint Worksheet.





 Learn more about Joe Newsum, the author of all this free content and a McKinsey Alum. I provide a suite of coaching and training services to realize the potential in you, your team, and your business. Learn more about me and my coaching philosophy.
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