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PESTEL Analysis


The LONG PESTEL analysis allows you to identify the factors that impact the context in which your organisation exists and evolves

Your organization is not a closed system. It interacts with its environment and is influenced by it. The LONG PESTEL analysis helps you precisely understand how the external environment can positively or negatively impact your business through six fundamental factors: Political, Economic, Social, Technological, Environmental and Legal.

In this way, the LONG PESTEL analysis provides a holistic overview of the environment in which a business operates, which will be useful in informing any strategic decision. To organise the information in your analysis, arrange your results according to their influence at Local (Micro), National or federal (Meso), Global (Macro) levels. This will provide you with a comprehensive and legible portrait of your context.

An insight about design of futures: if we orient the six fundamental factors towards the future, they can help us imagine the evolution of our environment and designing futures. If you are interested, see the Futures Wheel.

Looking at one's organisation, industry and market from multiple perspectives allows us to move consciously within them and understand the impact of the environment on our business.

How to use the LONG PESTEL Analysis

1. First Step

Define the context of the impact. Identify the scope of the research. Is it the context of your organisation or a particular market sector? Also define what is micro (local) for you, what is meso (national or federal) for you, what is macro (global) for you.

2. Second Step

Decide how the information will be collected and from whom. Identify more than one person to collect the data.This is crucial to bring in different insights and points of view. In addition, some factors require background knowledge. For example: who in your team has a clear understanding of how regulations impact your business?

3. Third Step

Identify appropriate sources of information. It is possible that some areas of LONG PESTEL are more impactful on your sector or business than others. However, examining information on all areas will certainly provide you with a more comprehensive overview of the external environment.

4. Fourth Step

Gather the information and analyze the results dividing them into the 6 different macro areas: Political, Economic, Social, Technological, Environmental and Legal.

5. Fifth step

Sort each item according to its impact. Does the information you found impact your research topic on a micro (local), mase (national or federal) or macro (global) level? You can also arrange the elements in the different quadrants according to their importance. This will be useful in identifying patterns to be investigated and monitored.

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LONG PESTEL analysis

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