Considerations for Your 2022 PESTEL Analysis

Did you know that what happens inside your company only impacts about 55% of the overall performance of your firm? Approximately 45% of your firm’s performance can be explained by what is happening outside of your company, in your industry or by other things outside of your control. A PESTEL analysis is an organized method to categorize these external factors into segments. It represents a straightforward way to help you scan and monitor your external environment and is usually part of developing an effective strategy.

Below are lists of things to consider for your PESTEL analysis in 2022. This list can serve as a starting point for deeper reflection and analysis. If your firm is not conducting this type of analysis yet, it should be. This list will provide you with a solid starting point. You are welcome 🙂

Political Factors represent the actions of government bodies that influence a firm.

  • Freedom of expression
  • The President
  • Elections
  • Covid-19
  • Relationships with the media
  • Lockdown measures
  • Mask mandates
  • National vs. state tension
  • Political polarization
  • Foreign relations
  • Foreign advancements in science, technology and innovation
  • Increasing firearm regulation
  • Increasing corporate tax rates
  • Social security fund availability

Economic Factors have a macro perspective and are used to evaluate production, trade and consumption.

  • US GDP
  • US Credit Rating
  • Inflation
  • Exports
  • Imports
  • Unemployment rate
  • Covid-19
  • Stimulus / Relief Packages
  • Financial markets
  • Travel bans
  • National debt as a portion of GDP
  • Public debt rates
  • Exchange rate movements
  • Business / consumer confidence indices
  • Infrastructure and transportation
  • Trade agreements
  • Volatility in the currency, bond and stock markets
  • Tax rates

Sociocultural Factors are the cultures, norms, values and population characteristics that we experience in society.

  • Social security system
  • Life expectancy
  • Ethnic composition
  • Major religions
  • Covid-19
  • Social distancing
  • Standards of living
  • Education systems
  • Affordable Care Act / healthcare system (Medicare & Medicaid)
  • Labor shortages
  • Social security costs
  • Instances of hate crimes
  • Corporate and personal tax rates
  • Vaccines
  • Domestic workforce development programs
  • Generational preferences
  • Social security programs
  • Poverty
  • Inequality

Technological Factors represent new processes, products and innovation applied in industry.

  • US patents
  • Online piracy
  • Social media
  • Biotechnology and nanotechnology developments
  • 3-D printing
  • Intellectual property rights
  • Science, technology and innovation leader
  • Rising automation in business
  • Big data
  • Foreign spending on R&D
  • Use of robotics
  • Shifts in skills in service industries as more automation takes place
  • Telecommunications
  • Prevalence of Internet use

Ecological Factors include broad environmental issues representing our relationship to our natural environment.

  • CO2 emissions
  • Clean energy
  • Carbon footprint
  • Availability of public charging outlets
  • Toxic chemicals
  • Waste management practices
  • Recycling
  • Air quality
  • Water and sanitation
  • Water resources
  • Agriculture
  • Availability of natural resources
  • Forests and fisheries
  • Environmental regulations
  • Environmental policy
  • Pollution

Legal Factors are outcomes of political processes and include laws, regulations, mandates and court decisions.

  • Freedoms – business, labor, investment, financial
  • Cycle time to start a business
  • Uniformity or lack thereof across states
  • Police services
  • Judicial or Supreme Court rulings
  • Regulation or deregulation
  • Businesses operated across state lines
  • The US Constitution
  • Efficiency of the legal system
  • Effective tax rates paid
  • Tax compliance requirements
  • Competition policy
  • Civil liberties
  • Acts of Congress
  • Financial investment regulations
  • Trade regulations
  • Property rights

Each of these elements may play a role in effecting your firm’s performance. If you have benefitted from this analysis and want to take it to the next level, I offer one-on-one sessions with clients to help them create a custom strategic plan for their company for less than the price that an undergraduate student would pay for one month’s rent. Learn more at

Leave a Reply

Your email address will not be published. Required fields are marked *