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So PESTLE is for external factor analysis:

  • Political – Government policies, regulations, political stability, and leadership changes.
  • Economic – Economic growth, inflation rates, exchange rates, interest rates, and economic cycles.
  • Social – Social trends, demographics, lifestyle changes, cultural factors, and population shifts.
  • Technological – Technological advancements, AI, innovation, automation, and R&D developments.
  • Legal – Regulatory updates, aka changes in tax laws, labour laws, and health and safety regulations, etc.
  • Environmental – climate change, sustainability, and environmental regulations.


SWOT can be both internal and external.

Internal:

  • Strengths: Internal attributes and resources that give the company a competitive advantage.
  • Weaknesses: Internal factors that may hinder the company’s ability to achieve its goals.

External:

  • Opportunities: External factors that the company can capitalise on to achieve its objectives.
  • Threats: External factors that could pose challenges or risks to the company’s success.

Therefore, using PESTLE helps you understand the external environment better, which can then strengthen the Opportunities and Threats parts of a SWOT analysis.


Hope that makes sense :)


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