What is a PESTEL Analysis?

PESTEL Analysis is a strategic framework used to evaluate the external environment of a business by breaking down the opportunities and risks into Political, Economic, Social, Technological, Environmental, and Legal factors.
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.

There are several steps involved when undertaking a PESTEL analysis.
At first, it is important to get a group of people together from different areas of the business and brainstorm ideas. Next, you will want to consult and seek the opinions of experts from outside your business.
These could be your customers, distributors, suppliers or consultants who know your business well. The third stage will involve you researching and gathering evidence for each insight in your Analysis.
Then you will want to evaluate and score each of the items for ‘likelihood’; how likely it is to happen and ‘impact’; how big an impact it could have on your business.
The final stage involves refining your ideas and repeating the proves until you have a manageable number of points in each of the six categories.

It can provide an advance warning of potential threats and opportunities
It encourages businesses to consider the external environment in which they operate
The analysis can help organisations understand external trends

Many researchers argued that simplicity of the model that it is a simple list which is not sufficient and comprehensive
The most significant disadvantage of the model is it is only based on an assessment of the external environment

To know more about PESTEL factors in detail, read the article : https://blog.oxfordcollegeofmarketing.com