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External Analysis

PESTEL Analysis — Learn

Explanation, how to use, what to output, and common mistakes.

AI Assist Tool Overview

What is PESTEL?

PESTEL is a macro-environment framework. It helps you spot external forces in a country context that can create risks or opportunities for your idea.

The 6 dimensions

  • Political – stability, regulation direction, policy priorities
  • Economic – inflation, interest rates, consumer spending, growth
  • Social – demographics, culture, lifestyle, adoption behavior
  • Technological – tech access, pace of change, infrastructure
  • Environmental – climate rules, sustainability pressure
  • Legal – compliance, employment law, data protection, licensing

How to use it (practical)

  1. Pick a country + industry context.
  2. For each dimension, list 3–5 risks and 3–5 opportunities.
  3. Add actions (mitigations + exploitation steps).
  4. Score severity 1–5 to prioritize where to focus first.

Common mistakes

  • Too generic (not country/industry-specific).
  • No actions (only “insights” without next steps).
  • No prioritization (severity missing).

What you should produce

  • 6 cards (one per dimension)
  • Risks + Opportunities + Actions
  • Severity score (1–5)
  • Raw JSON for chaining into Porter/Finance
Macro analysis is guidance — validate with real sources and interviews.

What is PESTEL?

PESTEL is a macro-environment framework. It helps you spot external forces in a country context that can create risks or opportunities for your idea.

The 6 dimensions

  • Political – stability, regulation direction, policy priorities
  • Economic – inflation, interest rates, consumer spending, growth
  • Social – demographics, culture, lifestyle, adoption behavior
  • Technological – tech access, pace of change, infrastructure
  • Environmental – climate rules, sustainability pressure
  • Legal – compliance, employment law, data protection, licensing

How to use it (practical)

  1. Pick a country + industry context.
  2. For each dimension, list 3–5 risks and 3–5 opportunities.
  3. Add actions (mitigations + exploitation steps).
  4. Score severity 1–5 to prioritize where to focus first.

Common mistakes

  • Too generic (not country/industry-specific).
  • No actions (only “insights” without next steps).
  • No prioritization (severity missing).

What you should produce

  • 6 cards (one per dimension)
  • Risks + Opportunities + Actions
  • Severity score (1–5)
  • Raw JSON for chaining into Porter/Finance
Macro analysis is guidance — validate with real sources and interviews.
What this tool does

PESTEL helps you understand the macro forces around your business idea in a country context. You’ll get risks, opportunities, actions and a severity score.

  • 6 dimensions: Political, Economic, Social, Technological, Environmental, Legal
  • Prioritize with severity (1–5)
  • Use Raw JSON to chain into other frameworks
Guidance only — validate with sources and interviews.
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