PESTLE analysis is a useful tool that helps students spot potential chances and risks in the world of business. It does this by looking closely at six important outside factors: Political, Economic, Social, Technological, Legal, and Environmental.

What is PESTLE Analysis?

1. Political Factors:

   • This part looks at how stable the government is and what rules and laws they have. These can really affect how a business runs. For example, a survey from 2021 showed that 62% of businesses think government rules are very important for their growth.

2. Economic Factors:

   • Here, we consider things like inflation (how prices go up), job loss rates, and overall economic growth. For example, after COVID-19, the UK economy grew by 7.5% in 2021, which gave businesses the chance to grow too.

3. Social Factors:

   • This looks at trends in society, cultural values, and what people think. Studies show that 78% of shoppers prefer to buy from brands that are good for society.

4. Technological Factors:

   • In this section, we think about how new technologies and innovations change things. For instance, in 2020, online sales went up by $4.28 trillion because more people started shopping online.

5. Legal Factors:

   • This part focuses on laws that businesses have to follow, like job rules and health regulations. About 50% of businesses said that it has become more expensive to follow new laws.

6. Environmental Factors:

   • This involves looking at the environment, like climate change and how sustainable practices are. A report found that 63% of millennials prefer to support companies that care about the environment.

Conclusion:

By looking at these factors, students can see both the chances (like trends that could bring in customers) and the risks (like changes in rules) that businesses deal with. Understanding these things helps in making smart plans and decisions, which are very important for doing well in business today.