A PESTEL analysis is a framework or tool used by marketers to analyze and monitor the macro-environmental (external marketing environment) factors that have an impact on an organization, company, or industry. It examines the Political, Economic, Social, Technological, Environmental, and Legal factors in the external environment. A PESTEL analysis is used to identify threats and weaknesses which are used in a SWOT analysis.
PESTEL Analysis can be an effective framework to use in Corporate Strategy Planning and for identifying the pros and cons of a business strategy. The PESTEL framework is an extension of the PEST strategic framework one that includes additional assessment of the Environmental and Legal factors that can impact a business.