PESTLE analysis, short for Political, Economic, Social, Technological, Legal and Environmental, is essentially a tool used by businesses to regularly assess the environment in which they operate to identify the factors that could impact their operations. As the name suggests, this approach analyzes external factors from the perspective of politics, economics, environment and so on. It is, simply put, a strategic framework for understanding external influences on a company. There are many macro-environmental factors that influence strategic planning such as new laws, tax changes, trade barriers and demographic changes. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay By understanding these external environments, organizations can maximize opportunities and minimize threats to them. Political factors concern the pressures and opportunities brought by political institutions and the extent to which government policies affect the company. These factors include, among others, government policies, trade policies, corruption, lobbying, elections and political trends. Economic factors relating to economic policies, economic structures, and the extent to which the economy affects the business include inflation, interest, industry growth, import/export ratios, and international trade. Social factors refer to the cultural aspects, attitudes, beliefs that will influence the demand for a company's products and the way the company operates. These factors include demographics, consumer attitudes and opinions, consumer purchasing patterns, advertising and publicity. Technology factors relating to technological aspects, innovations, barriers and incentives and the extent to which these impact the business include emerging technologies, technology legislation, research and innovation, to name a few. Legal factors, including employment law, consumer protection and regulatory bodies and processes, refer to the laws, regulations and legislation that will affect how the business operates. Environmental factors such as environmental and ecological regulations and sustainability refer to the ecological and environmental aspects that will influence the demand for a company's products and how the company operates. The main benefits of using PESTLE analysis include cost effectiveness, developing attention and exploiting opportunities. The only cost of PESTLE analysis is time. While additional programs can help organize input and feedback, PESTLE can be completed via a simple document or pen and paper. The amount of research needed, how long, and how often a company needs to perform PESTLE analysis are optional. This tool can also be narrowed down and used for specific products, marketing plans, and customer relationships. In particular, when used in new developments within the company, PESTLE analysis can increase awareness of potential threats. For example, if a company learns that there will be a 15% increase in population growth within a certain city, this can be excellent for its business. But if the increase is predominantly among seniors while their target market is in the 20-30 age group, this could be an opportunity to reach a new audience with a new product. Please note: this is just an example. Get a custom paper now from our expert writers. Get a Custom Essay With PESTLE, a company.