PESTLE Analysis: What Goes Where?


PESTLE analysis, marketing environment, macro-environment, SWOT analysis

Review the activity below or download the PDF student worksheet

Student Discussion Activity

PESTLE analysis is commonly used to organize the review of relevant macro-environment trends and factors into a simple summary table.

From there, we can assess the potential impact of the factor or trend as either positive or negative and classify it accordingly (as an Opportunity or as a Threat) into our SWOT matrix, as per the following diagram.

Your Task

In this activity, you are presented with four sets containing 12 environmental factors each. Your task is to classify each factor to the most appropriate component of the PESTLE analysis structure.

Please note that in each set of ten factors statements there are always:

  • two political factors,
  • two economic factors,
  • two social factors,
  • two technology factors,
  • two legal factors, and
  • two environmental factors

Simple work through the following sets of macro-environment factors and classify each factor into the appropriate component of PESTLE matrix, allocating two per box per set – for Sets A to D below.

PESTLE Factors Set A

  1. Broadening social media platform options
  2. Clearly defined social class structure
  3. Decreasing family sizes (less children per couple)
  4. Easy to borrow money
  5. High inflation rate
  6. Increasing government spending
  7. Industry-based regulation
  8. Negative impacts from climate change
  9. Recent change of government
  10. Shift to recyclable packaging
  11. Shortening technology lifetime
  12. Strong copyright and patent laws

PESTLE Factors Set B

  1. Accreditation requirements for staff
  2. Advancing AI tools
  3. Consumer preference for green products
  4. Favorable trade agreements established
  5. Fluctuating stock market conditions
  6. Greater access to big data
  7. High level of government welfare support
  8. Local brands are preferred by consumers
  9. Positive attitudes to health and diet
  10. Pressure to be seen as an ethical company
  11. Regulation for product safety standards
  12. Wealth is concentrated among the very wealthy

PESTLE Factors Set C

  1. Banks are tightening their lending
  2. Consumers are happy to switch between brands
  3. Country is open to international investment
  4. Eating out of home is common
  5. Greater smart phone capabilities
  6. Growing risk of online fraud
  7. High frequency of litigation
  8. Landfill concerns of product disposal
  9. Lobbying pressure on the government
  10. Rising commodity and oil prices
  11. Scarcity of clean water
  12. Tough takeover/acquisition rules

PESTLE Factors Set D

  1. Advancing customer self-serve technology
  2. Advertising regulations
  3. Conservative political focus
  4. Cost burdening regulation
  5. Easy access to ‘start-up’ funding
  6. Increased expectation for environmentally products
  7. Low levels of government grants for businesses
  8. People tend to save/invest their disposable income
  9. Pressure to move to a zero-carbon footprint
  10. Responsible sourcing of materials expected
  11. Shift to open innovation
  12. Skill shortages in key industries

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