PESTLE analysis is a tool to study the macro conditions of an organization/business. It is mainly used by marketing/sales professionals and business managers to analyze certain business aspects.
In This Article
Why People Do PESTLE Analysis
It's a well-known marketing tool that marketers across the world use for business analysis and enhancement. PESTLE Analysis is used to examine the external factors that directly impact any business and its future.
Before planning to introduce a new product in the market, a thorough PESTLE Analysis helps them understand if the product is going to be a success or a failure and what changes can be made to market the product successfully.
In the past, there were only traditional businesses worldwide, but the times have changed, and the world has shifted to a digital environment. Most of the sales these days are happening digitally, as PESTLE Analysis is becoming more popular.
You must know about the key factors that determine the outcome of a successful PESTLE Analysis. Please read through the following part to know them.
6 Essential Factors of PESTLE Analysis
For starters, PESTLE stands for:
- P - Political
- E - Economic
- S - Social
- T - Technological
- L - Legal
- E – Environmental
Here are all six factors of PESTLE Analysis in brief.
Political
The government and its policies mainly play a very important role in a company's progress. Many countries, such as Sweden, offer numerous benefits to the nation's organizations. Various policies have been implemented in the industries for growth.
The loan facilities by the national banks, relaxation in the taxation processes, crowdfunding, etc., help the industry grow and flourish.
The political environment of a country greatly impacts a company's business growth, and a business cannot thrive without the support of governmental benefits. So, this is the "P" of PESTLE Analysis.
Economical
The economic conditions of a country suggest what businesses can be established there. Even though there can be different economic infrastructures in one country between different states/regions. The economy of a region depends on the following factors:
- GDP
- Exchange Rate
- Inflation Rate
- Unemployment Rate
- Globalization
So, each of these factors is interrelated with the others. To understand a country's economic situation in detail, you need to know about its historical, geographical, demographic, and industrial existence.
So, all these factors together determine the economic health of a nation.
Social
The PESTLE Analysis is also helpful in calculating the sociocultural values of an organization and determining what sort of products are in demand according to current industry standards.
Factors that impact the sociocultural environment of an organization are mentioned below.
- The Consumer Behavior/Likings
- Age Profile
- Population Growth Rate
- Religious Belief
- Social Attitudes
All these are important factors that determine a company's sociocultural values and possibilities of success.
Technological
When the company launches a product, the marketers must also check whether the product will match the current technology or lag behind the generation's needs.
The product has to fulfill current industry standards and meet all technological requirements. A PESTLE Analysis tool will accurately assess all these in detail and show the results by seeing which issues can be improved.
Technological changes can have a profound impact on companies. To sustain growth in the market, a company needs to keep upgrading its technology. A thorough knowledge of current technology and market trends is required for the development of businesses.
Legal
The legal aspect is one of the most fundamental aspects that determines the success and establishment of a business or brand.
The government body tactfully controls legal policies such as trade licenses, business registration, loan eligibility, foreign trade licenses, investment and funding policies, business shares, and expansion policies.
All these factors are directly related to any organization's growth and prosperity. The more a government supports them legally, the more they flourish. Through a detailed PESTLE Analysis, all these factors can easily be measured and managed.
Environmental
The sustainability of a business and the success of a company also depend upon environmental situations. For example, the value of any product/service is determined by factors such as the scarcity of raw materials, pollution targets, and carbon emissions.
Furthermore, people are gradually becoming aware of the potential impacts of climate change and are learning more about how it will affect the environment. So, it has influenced how companies operate and the products they offer.
Doing a PESTLE Analysis With Mind Mapping
Mind maps are graphical and diagrammatic representations of any sequential process or ideas.
When a PESTLE Analysis of a product is conducted before launching it to market, and a mind map is also created, it helps marketers understand the PESTLE Analysis process more easily.
A successful product launch is essential for any company's growth. Mind mapping and PESTLE Analysis are two different technologies that are based on similar thoughts.
Both are interrelated and connected. To achieve the best results with mind mapping, one must understand the concept of a PESTLE Analysis.
Technologies will change, but the concept of enhancement will remain the same. The use of marketing tools has been making things easier for marketers; they need to choose the right one, use it, and take advantage of it.
Examples of PESTLE Analysis Mind Maps
In this part, you can look at PESTLE analysis mind maps for inspiration. The best part is that these PESTLE analysis diagrams are based on popular brands, so you’ll really get the hang of mind mapping once you study them.
These PESTLE analysis mind map examples are taken from EdrawMind’s Mind Map Gallery. You can even download the working files of the examples below and open them in Wondershare EdrawMind.
EdrawMind is designed to be an easy-to-use mind mapping or diagramming tool. With its creative tools, AI functions, symbol library, and thousands of templates in Mind Map Gallery, you’ll surely love it for analysis.
NIKE PESTLE Analysis
This example shows how external factors influence a global sports brand like Nike. Each branch highlights key areas such as political trade policies, evolving consumer behavior, and environmental sustainability.
It’s a clear visualization of how Nike adapts its marketing and manufacturing strategies in response to global pressures. You can edit this easily for your own brand’s assessment by replacing the categories.
ZARA PESTLE Analysis
This PESTLE mind map breaks down how Zara’s fast-fashion business model interacts with the PESTLE factors. It shows how political import policies, ethical issues, and technology integration shape Zara’s global success.
This one is great for studying fashion industry dynamics—you can duplicate it and adjust the nodes to analyze any clothing or retail brand you’re researching.
ADIDAS PESTLE Analysis
Here’s a detailed example analyzing Adidas’ operations from every external perspective. The map organizes insights under political, economic, social, technological, legal, and environmental aspects.
It’s ideal for marketers or students learning how global corporations manage change. You can modify it quickly to build your own PESTLE analysis for another sports or lifestyle company.
Explore More Examples or Make One for Free Now
If you’d like to explore more PESTLE analysis templates, open EdrawMind and click Gallery on the left panel.
In the search bar, type “PESTLE,” “business strategy,” or “market analysis.”
You’ll find hundreds of templates made by professionals and students for case studies, marketing plans, and competitive analysis. If you find one that fits your topic, click Duplicate to open and edit it directly.
You can adjust categories, change colors, and add your own notes or icons to personalize the structure for your business or academic report.
How To Make a PESTLE Analysis Mind Map for Free
If you prefer building one from scratch, EdrawMind makes it simple with its creative tools and over 210+ diagram types. You can easily organize your data and visualize the external factors affecting your business.
Step 1
Double-click the Main Idea node and name it after your company or your target company that you want to analyze. For example, it can be “TESLA PESTLE Analysis.”
Try the app & get 500 free AI tokens
Step 2
Create Main Topics labeled Political, Economic, Social, Technological, Legal, and Environmental. Use the Topic button or press Enter on your keyboard after clicking on the Main Idea node you created in Step 1.
Use the Subtopic button to include the specific details of each factor of the PESTLE analysis.
Step 3
Once your content is complete, customize the visual layout by changing fonts, themes, or colors. You can also insert company logos or graphs for context.
Step 4
When finished, export your PESTLE mind map as a PDF, PNG, or editable PPT to include it in your reports or presentations.
EdrawMind
AppsEdrawMind Online
