Abstract
A PESTEL analysis or PESTLE analysis (formerly known as PEST analysis) is a framework or tool for strategic analysis and negotiations used to analyse and monitor the macro-environmental factors that may have a profound impact on an organization’s performance. This tool is especially useful when starting a new business or entering a foreign market. It is often used in collaboration with other analytical business tools such as the Porter’s five forces analysis or SWOT analysis to give a clear understanding of a situation and related internal and external factors. PESTEL is an acronym that stands for political, economic, social, technological, environmental and legal factors. However, throughout the years people have expanded the framework with factors such as demographics, intercultural, ethical and ecological resulting in variants such as STEEPLED, DESTEP and SLEPIT. In this article, we will stick simply to PESTEL since it encompasses the most relevant factors in general business. Each factor will be part of the negotiation analysis as shown in Fig. 8.1 (Helmold, Dathe, & Hummel, Erfolgreiche Verhandlungen. Best-in-Class Empfehlungen für den Verhandlungsdurchbruch. Springer Gabler, Wiesbaden, 2019; Johnson & Scholes, Exploring corporate strategy. Text and cases. Prentice Hall London, 1997).
The will to win, the desire to succeed, the urge to reach your full potential—these are the keys that will unlock the door to personal excellence.
Kurt Tucholsky (1890–1935)
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Helmold, M., Dathe, T., & Hummel, F. (2019). Erfolgreiche Verhandlungen. Best-in-Class Empfehlungen für den Verhandlungsdurchbruch. Wiesbaden: Springer Gabler.
Helmold, M., & Terry, B. (2016a). Lieferantenmanagement 2030. Wiesbaden: Springer.
Helmold, M., & Terry, B. (2016b). Global sourcing and supply management excellence in China. Singapore: Springer.
Johnson, G., & Scholes, K. (1997). Exploring corporate strategy. Text and cases (4th ed.). London: Prentice Hall.
Porter, M. E. (1985). Competitive advantage. Creating and sustaining superior performance. New York: Free Press.
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2019 Springer Nature Switzerland AG
About this chapter
Cite this chapter
Helmold, M. (2019). Tools in PM. In: Progress in Performance Management. Management for Professionals. Springer, Cham. https://doi.org/10.1007/978-3-030-20534-8_8
Download citation
DOI: https://doi.org/10.1007/978-3-030-20534-8_8
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-20533-1
Online ISBN: 978-3-030-20534-8
eBook Packages: Business and ManagementBusiness and Management (R0)