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PESTEL analysis (one page)



  • PESTEL analysis is used to conduct a structured investigation of the external environment in which the organization (or change target) operates
  • This involves consideration of the political, economic, social, technological, environmental (ecological), and legal environment as they pertain to the organization (or change target)

When to use?

  • PESTEL analysis is a useful strategic planning tool
  • In the context of change, it is conducted in the early planning phases such as during the gap analysis; this ensures that decisions regarding the ideal (future) state take into account the broader environment in which the organization (change target) operates

What Next

  • The results of the PESTEL analysis may be used to inform the decisions about the desired future state as well as plans for individuals and teams affected by the change
  • If conducted prior to a SWOT analysis, the results of the PESTEL analysis provide insights on their opportunities and threats

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