Essay4Business Study Tools PESTEL Analysis Creator

Free PESTEL Analysis Creator

🖥️ How Our Tool Works
🤔 The Purpose of PESTEL Analysis
✅ PESTEL Analysis Factors
📈 PESTEL's Pros & Cons
✍️Free Sample Analysis
🔗 References

🖥️ PESTEL Creator: How It Works

As a business student, you may often have to evaluate a company's business environment. An excellent way to do it is to use the PESTEL analysis. But what if you don't want to spend hours turning the results into a beautiful diagram?

Well, the good news is that there’s no more need to do all the work yourself. Use this free editable PESTEL analysis creator developed by our team to receive a neat-looking report in seconds:

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Download your model analysis.

🤔 What Is the Purpose of a PESTEL Analysis?

PESTEL is an acronym that stands for the Political, Economic, Social, Technological, Environmental, and Legal factors that influence a firm's operations. It is a variation of an original PEST framework created by Francis Aguilar.

The analysis is meant for an in-depth systematic examination of the environment in which a company operates. The results are then used for the company's strategic management.

Is It PESTEL or PESTLE?

Overall, there is no difference between the PESTEL and PESTLE analytical frameworks. The set of factors analyzed in each is the same, with the only distinction:

PESTEL analysis places the environmental factors before the legal ones;
PESTLE analysis focuses on the legal issues first, followed by the environmental analysis.

✅ PESTEL Analysis Factors

You already know the 6 factors included in the PESTEL analysis. Let's see what each of them involves:

🗳️ Political	No company exists in a vacuum; its operations are affected by the government's actions in its jurisdiction. Thus, a company may experience positive or negative influences resulting from corporate taxation changes, the state's fiscal policy, anti-trust and anti-competition laws, and the free trade arrangement the country has in place.
💸 Economic	A company is a part of its country's economy. Consequently, its health depends on the state employment rates as well as inflation, exchange rates, and the interest rates set by the central bank.
🤝 Social	Companies usually cater to users and customers, so they cannot ignore changing lifestyles, consumption trends, and user attitudes.
🤖 Technological	The degree of tech development and adoption in a specific context is decisive in terms of a company's competitive advantage and performance. Thus, it's vital to consider its automation level, technology infrastructure, and cybersecurity measures.
♻ Environmental	Environmental factors are an essential part of a company's strategic management. They include the allowed carbon footprint, the firm's effect on climate change, and natural resource consumption.
⚖ Legal	The legal framework of any company's operations is an essential factor to consider. It may affect the firm's employment policy, intellectual property protection measures, licensing, and broader arrangement of industry-specific activities.

📈 PESTEL Diagram Benefits & Drawbacks

Using PESTEL in business analysis comes with certain pros and cons.

The benefits are as follows:

It's simple in execution.
It enhances your understanding of a company's business environment.
It's helpful in strategic thinking.
It facilitates early responses to the identified business threats.
It maximizes a company's opportunity to build on its strategic opportunities.

However, this approach also has some disadvantages, such as:

A lack of insight may make the analysis superficial.
Too much data makes it impossible to conduct an in-depth PESTEL analysis.
Using the PESTEL framework often involves making ungrounded assumptions.
You will have to reanalyze the environment regularly.

Make sure to consider these pros and cons if you decide to use a PESTEL diagram.

✍ PESTEL Creator: Example Analysis

Here is an example of an analysis our PESTEL analysis creator can do for you. We've picked Under Armour, a sports equipment company, to show you what the framework looks like in practice:

Political	The company's global expansion is limited by fluctuating currencies and exchange rates. Flexible governmental policies in places of apparel manufacturing can stimulate development. India and Bangladesh have strict labor laws and pose limitations for the company.
Economic	There are substantial growth opportunities for the apparel industry. Rising labor costs in China threaten price increases. The brand is currently in a financial crisis resulting from the COVID-19 pandemic.
Social	Active lifestyle increases demand for Under Armour's products. The company enjoys a reputation as an exclusive quality producer with fair pricing. Celebrity involvement (e.g., Dwayne Johnson) contributes to the firm's reputation.
Technological	The company has a strong online presence. Active social media engagement appeals to Millennials. Innovative technology integration is used in production processes.
Environmental	Urban Armour initiative uses environment-friendly and sustainable strategies. Collaboration with NGOs increases environmental awareness.
Legal	The company is currently involved in a scandal (accounting fraud.) Under Armour has sued another apparel brand for its brand name's misuse.

Now you're all set to create a beautiful PESTEL analysis! We hope you've enjoyed this article. Feel free to use our PESTEL template and other fantastic business tools: