PESTEL and PEST are almost the same. As can be seen, there is EL more in the PESTEL analysis than in pest analysis.

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In addition to the 4 factors in a PEST analysis (Political, Economic, Socio-Cultural and Technological), PESTEL analysis also addresses Environmental (Environmental) and Legal (Legal) conditions in the outside world.

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The letters EL therefore stand for Environmental (Environment) and Legal (legislation).

Environmental (environment) e.g.

• Wastes from companies
• Pollution
• Global warming
• Co2
• Energy
• Ecology
• CSR etc.

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Legal (legislation) e.g.

• Competition law
• Antitrust legislation
• Labour market legislation
• Product liability legislation
• export and import adjustments, etc.

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The environmental factor in particular has become very topical now that the world has become very focused on global warming and rising sea levels.

Want to know more about the PEST analysis? So read HERE

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PESTEL is accused of being based on the past. That's correct in a way, but it depends entirely on how you apply it. In order to forecast the future, we need to be well at home in the present and the past. Another criticism point is that the model simply notes some things and does not help to deal with the conditions one identifies.

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Therefore, a PESTEL analysis, which in the same way as the PEST analysis, must not only be prepared so that you can then tick the check mark by now it is completed. Together with your other strategy material, it must be translated into concrete actions . An easy and simple approach is to use MakeMyStrategy™ as structures and summarize all your work into one comprehensive and coordinated action plan.

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Everyone has become a partner in our strategy

Peter Hartvig

Owner and CEO. Managing Director

Hartvig Consult ApS