The PESTEL model looks at the macro environment, using the following headings:
PoliticalThe political environment includes taxation policy, government stability and foreign trade regulations.EconomicThe economic environment includes interest rates, inflation, unemployment, disposable income.SocialThe social/culture environment includes population demographics, social mobility, income distribution, lifestyle changes, attitudes to work and leisure, and levels of education.TechnologicalThe technological environment is influenced by government spending on research, new discoveries and development, government and industry focus of technological effort, speed of technological transfer and rates of obsolescence.EcologicalThe ecological environment, sometimes just referred to as ‘the environment’, considers ways in which the organization can produce its goods and services with the minimum environmental damage.LegalThe legal environment covers influences such as taxation law, employment law, monopoly legislation and environmental protection laws.
