AFRICA INSTITUTE OF CHARTERED PERSONNEL MANAGEMENT

(Reg No: 711906)
APPROVED AND ESTABLISHED PURSUANT TO SECTION 14 OF THE NAMIBIA CLOSE CORPORATION ACT 26 OF 1988

Introduction
A PESTLE analysis is a framework to analyse the key factors influencing an organisation from the outside. HR practitioners and senior managers can use the results of this analysis to guide strategic decision-making.

This factsheet provides a PESTLE analysis example (of the retail sector) as well as a ready-to-use PESTLE analysis template. It explores the six elements of PESTLE and outlines what PESTLE analysis is used for, focusing on the scenarios where it’s most valuable: business planning and marketing, workforce planning, product development, organisational change and HR strategy. The factsheet concludes by providing PESTLE analysis tips and looking at the advantages and disadvantages of a PESTLE analysis.

Key takeaways

• There are six elements to a PESTLE analysis: Political, Economic, Sociological, Technological, Legal, and Environmental.
• PESTLE analysis gives HR practitioners insight into the external factors impacting their organisation.
• The analysis is flexible, so organisations can use it in a range of different scenarios.
• You can use our PESTLE template for your own PESTLE analysis.