PESTLE analysis

PESTLE analysis is a framework for analysing macro-environmental factors which affects an organisation. Each individual letter stands for something different.

P - Political
E - Economical
S - Socio-Cultural
T - Technological
L - Law
E - Environmental


Some examples of each factors :

Political : Political stability, Labour law, Tax policy
Economical : Interest rates, exchange rates, inflation rates
Socio-cultural : Population, age distribution, health conciousness of the society
Technological : Rate of technological advancement, Technological incentives
Law : Company law, labour law, safety laws
Environmental : Climate, Weather, waste produce of a company that affects environment



Applying PESTLE on Airline Industries:
Political : Having read about multiple articles, terrorism has played a huge role in this section as real possibilities of planes being hijacked or bombed mid-air has occurred. Airline industries has suffered a great deal from cancellations of bookings and flights.

Economical: Oil prices has increased, causing a shift for the worse for airline industries. Planes are fuelled by oil and it causes a massive impact to the industry

Socio-cultural: Lately, the people aged 18 and above tend to go to different destinations for vacations with friends or families, more often than the previous decades. The increase helps airline companies to gain new opportunities and expand their horizons.

Technological: The technological advancements has helped many airline industries for the production of better planes, easier booking via internet and services provided with the usage of technologies.

Law: Customs have to check and make sure that all arrivals and departures of individuals are legal to enter or exit a country, thus slowing down the rate of flight switch and departures of flights.

Environmental: With the use of oil, the planes emits carbon dioxide in heavy amount.


Possible solutions to the probable problems that arise from the results of the analysis.
The factors of the analysis are mostly too big to change, however, the organisation can mould itself to adapt to the problems, ensuring the survivability of the organisation.

In political, to prevent possibilities of terrorism, security checks should be thoroughly made with every individuals and making sure each claims of terrorism are legitimate, as well as employing air marshals in every plane to ensure the safety of every flight.

In the economical factor, tactics should be taken such as joining an airline partnership in order to increase fuel buying power

In law, custom checks are inevitable, however, airlines do provide forms that can be filled in during the flight instead of in the airports to save time for both the airline and people.



PESTLE, just like Porter's 5 Forces, is a tool. It plays a big role in showing the need for adaptation from the problems caused by the macro environment and shows what opportunities could arise from some circumstances.