PEST or PESTLE analysis is a strategic management framework used to identify and analyse the external macro-environmental factors that can impact a business. The acronym stands for Political, Economic, Social, and Technological factors. By examining these external influences, businesses can anticipate potential risks and opportunities, which helps in strategic planning and decision-making. Each component of PESTLE focuses on a distinct area of the external environment:

Business mentors often use this tool to guide their clients in understanding how external forces might shape their operations and strategies. It is particularly useful for startups, SMEs, or businesses undergoing transformation, as it provides a structured way to think about the bigger picture.

Discover more information about when to use a PESTLE Analysis, its benefits and a downloadable template for your next mentoring session in the PDF linked below.