PESTEL analysis can be a valuable tool when it comes to market research. It considers numerous aspects, like political factors and other insights, to create the best strategic planning based on this information.

But for the PESTEL analysis template to work as expected, it must be carefully crafted and feature the correct data. From the SWOT analysis done to the depth of your analysis, everything will distinctly affect the final result depending on your approach.

This article will show you how to make the perfect PESTEL analysis. This way, you’ll be able to gather all valuable information to make solid strategies and highlight among the competition.

The PEST or PESTEL framework is a tool marketers and business owners use to analyze different factors before making any decision. It is usually attached to marketing actions but can also reflect on other business activities.

The PESTLE analysis template gathers the primary information regarding these points and serves as an insight generator for choosing the best action. You can use the PEST analysis to track these factors' actual and future impacts on your company. The deeper you analyze, the better it will be for generating the best plan.

PEST x PESTLE x PESTEL

It is common to see people referring to these documents in different ways, but don’t worry. They are the same framework.

While PESTEL and PESTLE are the exact same document, just in a different order of its categories, the PEST is a simplified version that doesn't contain the two last letters and, consequently, their categories.

If you find a PEST template, it will be the same document but without fields for legal and environmental factors. While PESTLE and PESTEL will just swap the order of these same fields.

Along with helping with strategy planning, the PEST analysis is vital for numerous reasons. The main one is that thanks to this framework, you can understand numerous external factors that can impact a campaign and the entire company.

From the external environment of your country to political factors like an election, everything has a distinct impact. Understanding these factors and how they influence your business is indispensable.

Moreover, the PESTEL helps generate insights thanks to the research done to gather information.  For example, by exploring the technological field, you can generate new ideas based on the technologies you researched.

Now that you know the PESTEL framework and why it is essential for companies, it is time to understand what each letter means. They are all equally important and should be featured in every analysis you make. Here is what they imply:

Political

The first letter of the framework regards political factors and how they can impact your company or campaign. The most common example is election campaigns that can happen simultaneously with your marketing actions. 

You must reflect on how it impacts your activities and what people might think of it, considering the current scenario. It can be stressful for the population, so everything must be well-thought-out.

Economic

Economic factors also enormously impact multiple aspects of a business or campaign. Since the PESTEL is an external analysis document, this category won’t regard any details about the company’s economic health but factors directly related to it, like foreign exchange rates.

Some of the most common data regarding economic factors are inflation, interest rates, and employment rates, for example. Once you gather all of them, you can build a solid economic analysis.

Sociological

Social factors regard details such as demographics and culture. They are directly related to your company and can impact the buyer’s behavior and how they perceive your company.

Moreover, sociological factors like the education and lifestyle of your clients can also have an economic influence on how much you charge for a product or service based on their disposable income. Conducting this research is vital to understand your audience.

Technological

Technological factors can be game changers depending on what you work with. If a company in a certain industry relies almost entirely on machines and software to perform their tasks, this part of the PESTLE analysis must be prioritized.

This doesn’t mean that other industries should skip this step. Technological analysis can generate numerous insights on improving efficiency or even making the production process cheaper.

Technological factors regard not only technology as new devices and machines but also your company's intellectual property. Researching new technologies goes beyond just hardware in these cases.

Environmental

The second E in the framework represents the environmental factors that can impact your company. Details like laws to preserve animal life and climate change can affect the way you run a business and the processes included in your production.

You must understand these environmental factors to better address a solution for your business needs. These details will directly depend on your country and the rules regarding the topic.

Legal

The last letter on the framework represents the legal factors. Taxation changes and other legal issues can drastically affect a business model and how the managers run different activities.

All legal obligations must be carefully considered before taking any action. If you live in a particular country where rules are more strict, ignoring them can cause severe consequences for your organization.

When it comes to the creation of a PEST analysis template, there are tons of options available. From known programs to specialized software, each one has its particular advantages to help with this task.

Among all the options available, we highly recommend using Microsoft Excel for this task. It not only has the best tools but is also an industry standard. This means you won’t need extra programs for your business tasks.

If you don’t have a Microsoft Office activation key, you can find one at RoyalCDKeys for a lower price. This way, you get all the tools and still save money.

If you don’t want to create your PESTEL analysis document from scratch, there is no problem. Here are some free templates you can download and use:

Template #1

PEST template with impact rate. Template featuring the mainframe's four main categories and a space dedicated to evaluating the level of impact on your business environment.

Get this template

Template #2

SWOT and PEST template. Document featuring the PEST analysis and a complementary SWOT analysis template for more accurate results.

Get this template

Template #3

Simple PESTLE analysis template. Document featuring a minimalistic layout containing all the essential categories for a complete evaluation.

Get this template

The PESTEL framework can be an invaluable tool if you’re looking for the best strategy to launch a new product or shine among the competition. By researching different aspects and external factors, you can decide the best actions to achieve your objectives.

The PESTEL, combined with a SWOT analysis, can create deep research that helps generate quality content for your business. This will give you everything you need to make your business skyrocket.

Now that you know everything you need, it is time to start creating your own PESTLE template. Follow each step carefully to find the perfect tool to generate successful campaigns and strategies.