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Using PESTLE to map your business context


It can be really useful to understand and map out the wider context of the sector in which you operate, because these trends and changes will affect your business and your brand. The PESTLE framework is a useful tool here.

PESTLE is a mnemonic for factors that drive and shape market trends and consumer behaviour. It stands for:

Political factors – Government changes that will affect trading – for example taxation & duty, grant funding, stability, international trade policy, environmental policy

Environmental factors – The impact of environmental change – for example materials availability, flood risk, water shortage, carbon footprint, pollution

Social factors – Changes in the way society is behaving that could influence your customers’ attitudes – for example changing household sizes, the rise of social media, changing attitudes to sexuality, or the adoption of greener lifestyles

Technological factors – How technology innovation might impact the market and your business

Legal factors – Changes in legislation that could impact your business – for example living/minimum wage laws, toxic materials legislation, labelling laws

Economic factors – Major economic drivers that affect trading, from local factors such as employment costs that affect margin and retail selling price, to national economic stability forecasts and international trading agreements.

You can download a free PESTLE worksheet here.

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