Frameworks
PESTEL analysis
Political, economic, social, technological, environmental and legal factors.
Facts checked against sources onWhat does PESTEL analysis mean?
PESTEL is a checklist of outside factors that can affect a market: political, economic, social, technological, environmental and legal. It grew out of research on scanning the business environment in the 1960s. In a case, do not read out all six; keep only the factors that move price, volume or cost in your maths, and size them.
Where does it come up in case interview prep?
Related terms
- SWOT analysisStrengths, weaknesses, opportunities and threats.
- Porter's Five ForcesFive pressures on how profitable an industry is; vocabulary, not a case structure.
- FrameworkA ready-made list of buckets for a common kind of case; know the words, do not recite them.
- Porter's generic strategiesCompete on lowest cost, on being different, or by focusing on a niche.
- BCG growth-share matrixSorting businesses by market growth and relative market share.
- Ansoff matrixFour growth routes: existing or new products in existing or new markets.
- McKinsey 7S frameworkSeven parts of an organization that must fit together.
- Value chainThe activities a firm performs to create and deliver value.
Learn it in context
See PESTEL analysis at work in a lesson from How industries work: the toolkit, with checks as you go.
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