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PESTEL Analysis

This is an updated form of pest analysis sometimes known as STEP.

PESTEL stands for Political, Economic, Social, Technical, Environment

and Legislative.
It is a strategic planning technique that provides a useful framework for
analysing the environmental pressures on a team or an organisation.

Political Social
- regulators - cultural change
- politicians - expectations
- demographics
- family change

- world trends Technological
- UK trends
- industry trends TEAM

Legislative Environmental
- European - cost implications
legislation - public opinion
- UK directives - sites and locations


A PESTEL Analysis can be particularly useful for groups who have become too
inward-looking. They may be in danger of forgetting the power and effect of
external pressures for change because they are focused on internal pressures.
You can use this technique for a large or a small group activity.
How does this work?

Use a flip chart so that everyone can visualise the data being generated.
1. Ask the group to suggest Political pressures for change in their
organisation. Write their suggestions on a flip chart.
2. Repeat this for Economic, Social, Technological, Environmental and
Legislative pressures.
3. Ask the group to consider the implications of each of these sets of
pressures for their work.


Rogers, J (1999) Facilitating Groups Management Futures Ltd. London.

Havergal, M & Edmonstone, J (1999) The Facilitator’s Toolkit Gower Publishing
Ltd. UK.

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