PESTLE is a tool which helps us analyse the macro environment. The macro environment of an entity is vast, dynamic and unpredictable. It involves various factors, and each of these factors have to be individually studied to understand the macro environment. And PESTLE helps managers make this analysis.

The term PESTLE is used to describe a framework for analysis of macro environmental factors.

PESTLE analysis involves identifying the political, economic, socio-cultural, technological, legal and environmental influences on an organization and providing a way of scanning the environmental influences that have affected or are likely to affect an organization or its policy. ‘PESTLE analysis is an increasingly used and recognized term, replacing the traditional framework for monitoring environment known as PEST analysis