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PESTEL is a tool used by strategic managers to understand the external environment in which an organisation operates. It includes:

  • Political factors
  • Economic factors
  • Soci-cultural factors e.g. changes in fashion or trends
  • Technological factors
  • Legal factors
  • Environmental factors

The tool is used as a mechanism to consider all factors which affect the firm which are beyond its control.

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Q: Analyzing the general environment - PESTEL?
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