A majority of individuals who have successfully undertaken their business courses can
confirm the importance of conducting a feasibility study especially when it comes to
establishing a new business. In this case, the main focus is on the external factors that may
affect the process of establishing or expanding a business. It is notable that a lot of
investment is involved when it comes to expanding a business or establishing a new one.
Therefore, there is the need to have some projections on what to expect upon venturing into
such an endeavor. This is where PESTLE analysis comes in. Essentially, PESTLE analysis
accounts for 6 major external factors that can influence the success or failure of a business.
They are; political, Economic, Social, Technological, Legal, and Environmental factors. Here
is a guide on how you can write a PESTLE analysis paper:
It is important to note that the intention of conducting a PESTLE analysis is to examine the
factors that are likely to affect a business in a new area of establishment. In essence, the
model applies largely for individuals whose intention is to expand their entrepreneurial
ventures. In this case, you need to ensure that the reader is familiar with what you intend to
do. This is where the background information is rendered necessary. Yours is to inform the
reader on what your purpose is and the intentions towards expanding or establishing your
business. Make sure that the reader is familiar with your plan by providing all the necessary
details in the introduction.
The Political Factors
The business sector is largely affected by the political developments that take place in
different occasions. For instance, imposition of new tax on new business establishment may
attract some political unrest which can directly influence the process of business expansion or
establishment. Essentially, businesses can only prevail in circumstances where there is
political stability. Therefore, it is important to consider all the underlying factors as far as
politics in a specific location are concerned. Make sure you research and account for all
political factors that can directly or indirectly affect business.
Economic factors directly impact business but in a number of ways. In this case, the main
consideration is the specific political factor. For instance, if a country is experiencing a lot of
inflation, the likelihood is that there will be some challenges in establishing a business.
Similarly, if a country is considered to have the highest rates of unemployment, business may
not work well. Therefore, you need to consider such economic factors.
This factor resonates with people’s way of life including culture. It is important to examine
how individuals respond to certain products based on their beliefs and convictions. Therefore,
your PESTLE analysis paper should account for all social factors including the prevailing
This section discusses the factors associated with technology and how they may impact new
business establishments. The focus should be on processing and production of goods and
services. You must examine if the current technological trends can suit your business or not,
and what should be done for better achievements.
It should be noted that any changes in law or legal provisions in a certain business location
can directly affect the process of business establishment. In some other cases, the legal
provisions may be favorable for the business in question. Therefore, your paper should
account for the underlying legal factors especially as far as business establishment is
Nature is part of what that influences businesses. This is why it is important to account for
environmental factors when it comes to PESTLE analysis. Identify all environmental factors
that can influence your business and how they can be handled in the favor of your venture.
Now that you have accounted for all the 6 major factors of new business environment, the
last section of your paper should give the verdict. Here, you should confirm if the new
business setting is viable or not. Communicate your verdict in a logical manner.