P.E.S.T.L.E Analysis

The P.E.S.T.L.E analysis tool is to help teams understand how various factors can pose as a threat or an advantage to existing projects or solutions.


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P.E.S.T.L.E Analysis

What is it for?

The PESTLE analysis tool is used to understand and identify how Political, Economical, Socio-cultural, Technological, Legal and Environmental (PESTLE) factors can influence an existing solution. This influence can either have a positive or negative impact on the solution.

When to use it:

Use this tool when you are looking to understand how various external factors can affect set business goals.

Who can use it:

Strategy and Innovation teams, Product teams looking identify areas they can leverage for growth and business sustainability.

Agree with your team and write down the idea you're all looking to weigh the impact. The idea can be an existing solution which the team has. Tick the various aspects that have an impact on your idea. This impact may be positive or negative.

After you have agreed with your team on the areas that might impact your idea, write down how they will affect your idea on post-its. You can use varying colours to signify impacts that are positive and negative.

Once you have carried out the same actions for all the factors, decide with your team if it is profitable to go further into building the idea. You can also rely on the results here to help you come up with ideas for future strategies.

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