Chapter 2 Tool 3: PESTLE analysis
Published 3 January 2011
Applies to England and Wales
© Crown copyright 2011
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A PESTLE analysis may help when assessing the risk arising from the impact of external factors on a charity, particularly when working internationally.
| Political | Factors may be altered by the government’s influence on a country’s infrastructure. This may include tax policy, employment laws, environmental regulations, trade restrictions, tariffs, reform and political stability. Charities may need to consider where a government does not want services or goods to be provided. |
|---|---|
| Economic | Factors include economic growth, interest rates, exchange rates, inflation, wage rates, working hours and cost of living. These factors may have major impacts on how charities operate and make decision. |
| Social | Factors include cultural aspects, health and safety consciousness, population growth rate and various demographics. |
| Technological | Factors include ecological and environmental aspects and available products and services. Charities may need to innovate, having considered the compatibility with their own technologies and whether they are transferable internationally. |
| Legal | Factors include any law which may impact on the charities’ operations, including NGO regulation and criminal and terrorist legislation which will differ from country to country. |
| Environmental | Factors include an awareness of climate change or seasonal or terrain variations which may affect charities’ service delivery methods. |