The PESTEL Analysis tool is a strategic tool to be used by Businesses of all sizes to evaluate and assess the business external environment in which it exists. This may help the Organization in decisions, such as, whether they should open new branches in certain countries, or localities, whether they should offer new products or services, monitoring the external environment for decision making. You can use this tool on a regular basis to record and monitor and changes in the external environment. It helps you identify the environment's pros and cons for new initiatives.
According to Wikipedia "PEST analysis was developed in 1967 by Aguilar as an environmental scanning framework." Later on the tool was named PESTEL to include 6 external environment factors:
Political Economical Social Technological Environmental Legal
To use this tool, you need to rate elements of each factor according to a scale from -10 to +10. Instructions for using this tool is provided on the tool's page.
Version V1.0.0
Release Date Oct. 31, 2023
How does it work?
To use this tool, you need to rate elements of each External Environemnt Factors that may affect your entity according to the scale given below:
Valid ratings for each question are:
Negative influence: -10,-9,-8,-7,-6,-5,-4,-3,-2,-1,
Neutral: 0
Positive Influence: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10
- Scores from -10 to -1 means negative effect on business and a score of -10 is the worst negative effect
- means no effect on the business
- Scores from 1 to 10 are positive effects on the business and a score of 10 is the best positive effect
After rating all elements the tool will produce two reports in the same directory as the tool:
1- comma separated values containing all the ratings, 2- a text file also containing all your ratings and the average for each factor.
Elements in the assessment
LEGAL
Trademarks,
Privacy Laws,
Discrimination Laws,
Health and Safety Laws,
Labor & Employment Laws,
Consumer Protection Laws,
Copyright and Patent Laws,
Commercial & Taxation Laws,
SOCIAL
Age Distribution,
Career Attitudes,
Safety Awareness,
Income Distribution,
Lifestyle Attitudes,
Health Consciousness,
Population Growth Rate,
Cultural / Religious Barriers,
POLITICAL
Trade Restrictions,
Government Policies,
Political Corruption,
Foreign Trade Policies,
Political Stability or Instability,
ECONOMICAL
Exchange Rates,
Interest Rates,
Inflation Rates,
Unemployment Rates,
Current Economic Situation,
Income of Consumers (Disposable),
ENVIRONMENTAL
Climate,
Weather,
Climate Change,
Natural Phenomena,
TECHNOLOGICAL
Automation,
Level of Innovation,
Technological Awareness,
Technological Pace of Change,
Technological Local Environment,
Scales used
Negative-positive scale:: ( No effect, Negative effect, Positive effect, Extremely Negative, Extremely Positive, )
