PESTLE is often used as a broad fact finding activity. It helps by establishing external factors that could impact decisions made.

PESTLE stands for:

How does each factor influence a business?

Political factors

  • Political stability
  • Corruption
  • Foreign trade policy
  • Funding grants


There might be finding available to support your current business. A business start-up developing games could have access to indie funds or developer grants. These can have massive impact on your businesses success.

Economic factors

  • Economic growth
  • Interest rates
  • Inflation
  • Disposable income of customers
  • Labour costs


Consider this: the impact COVID has had on businesses. — Has this been a positive or a negative impact?
Although the COVID-19 Pandemic saw many industries damaged, the games industry however saw increased sales suggesting people turned to video gaming to keep themselves entertained.

Social factors

  • Population growth
  • Age distribution
  • Cultural barriers
  • Consumer views
  • Workforce trends


Social media is very powerful and supports many businesses in building their brand and generating sales.
Consider this: the impact on businesses following negative customer reviews, or responding to posts in the wrong way.

Technological factors

  • Emerging technology
  • Maturing technology
  • Copyrights and patents
  • Production and distribution
  • Research and investment


Consider this: the mobile phone marketplace.
Android and Apple IoS both release yearly updates to their operating systems based around the technology is available.

Legal factors

  • Regulation
  • Employment laws
  • Consumer protection laws
  • Tax policies
  • Anti-trust laws


Consider this: The foot market. A new seller cannot open as they have not yet had a hygiene rating.

Environmental factors

  • Climate
  • Environmental policies
  • Available of inputs
  • Corporate social responsibilities


Cloud computing can be more agile, efficient and efficient solution but it also has clear advantages when it comes to sustainability through lower energy consumption, optimisation of hardware compared to on premises hardware and responsive allocation of on demand resources



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