/biz-pestel

name: "\"biz-pestel\""
description: "\"Apply PESTEL framework to scan the macro-environment across Political, Economic, Social, Technological, Environmental, and Legal dimensions. Use this skill when the user needs to assess external macro factors affecting a business, industry, or market — especially before entering a new country, launching a product, or evaluating regulatory risk. Also use when the user mentions 'macro analysis', 'external environment', or 'what trends should we watch'.\"."
allowed-tools: Read, Glob, Grep

PESTEL Analysis

Overview

PESTEL scans the macro-environment across six dimensions to identify external forces that could impact a business or industry. It operates at the **macro level** — broader than industry (Porter's Five Forces) or company (SWOT). Use it to surface trends and risks the organization cannot control but must respond to.

When to Use

**Trigger conditions:**

• User evaluating a new market or country for expansion
• User needs to understand regulatory, economic, or social trends
• User wants to identify macro risks before strategic planning
• User asks "what external factors should we consider?"

**When NOT to use:**

• For company-specific assessment → use SWOT
• For industry competitive dynamics → use Porter's Five Forces
• For product portfolio decisions → use BCG Matrix

Framework

IRON LAW: Macro-Level Only

PESTEL factors are MACRO-ENVIRONMENT forces — they affect all players in
a market, not just one company. "Our costs are rising" is not a PESTEL factor.
"Inflation is driving up input costs across the industry" is.

Test: "Does this factor affect ALL companies in this market?"
  YES → Valid PESTEL factor
  NO  → It belongs in SWOT or Five Forces, not PESTEL

IRON LAW: Evidence-Based, Not Speculative

Every PESTEL factor must be grounded in observable data, trends, or events.
"Technology might change" is not a factor. "5G rollout reaching 70% coverage
by 2026 (GSMA data)" is a factor.

Step 1: Define the Scope

• **What entity?** Country, region, or market being analyzed
• **For whom?** Which business or industry perspective
• **Time horizon**: near-term (1-2 years) or medium-term (3-5 years)

Step 2: Scan Each Dimension

For each of the six dimensions, identify 2-4 key factors with evidence:

**P — Political**: Government stability, trade policy, taxation policy, political risk, corruption, foreign investment rules

**E — Economic**: GDP growth, inflation, interest rates, exchange rates, unemployment, consumer spending power, commodity prices

**S — Social**: Demographics, cultural trends, consumer attitudes, lifestyle changes, education levels, urbanization, health consciousness

**T — Technological**: R&D activity, automation, digital infrastructure, emerging technologies, innovation rate, tech transfer

**E — Environmental**: Climate change, sustainability regulations, resource scarcity, carbon emissions rules, environmental awareness, natural disaster risk

**L — Legal**: Employment law, consumer protection, data privacy (GDPR, PDPA), industry-specific regulation, IP protection, antitrust

Step 3: Assess Impact and Likelihood

For each factor:

• **Impact on the business**: High / Medium / Low
• **Likelihood of change**: High / Medium / Low
• **Direction**: Favorable (+) or Unfavorable (−)

Step 4: Prioritize and Connect

1. Rank factors by impact × likelihood 2. Identify cross-dimensional connections (e.g., political instability → economic uncertainty → social unrest) 3. Highlight the top 3-5 factors that require strategic response

Output Format

# PESTEL Analysis: {Market/Country} for {Business Context}

## Scope
- Market: ...
- Perspective: ...
- Time horizon: ...

## PESTEL Factors

| Dimension | Factor | Evidence | Impact | Direction |
|-----------|--------|----------|--------|-----------|
| Political | ... | ... | H/M/L | +/− |
| Economic | ... | ... | H/M/L | +/− |
| Social | ... | ... | H/M/L | +/− |
| Technological | ... | ... | H/M/L | +/− |
| Environmental | ... | ... | H/M/L | +/− |
| Legal | ... | ... | H/M/L | +/− |

### Political
{Detailed analysis}

### Economic
{Detailed analysis}

### Social
{Detailed analysis}

### Technological
{Detailed analysis}

### Environmental
{Detailed analysis}

### Legal
{Detailed analysis}

## Priority Factors
1. {Highest impact factor} — {required response}
2. ...
3. ...

## Cross-Dimensional Connections
- {Factor A} → {Factor B} → {combined implication}

Examples

Correct Application

**Scenario:** PESTEL for Vietnam market, perspective of a Taiwanese food manufacturer (2025-2028)

| Dimension | Factor | Evidence | Impact | Direction | |-----------|--------|----------|--------|-----------| | Political | Vietnam-Taiwan informal trade relations stable; no diplomatic friction | Bilateral trade volume growing YoY | Med | + | | Economic | Vietnam GDP growth 6.5% (2024), rising middle class | World Bank data, urban consumer spending up 12% | High | + | | Social | Young population (median age 31), increasing demand for packaged food | UN demographic data, urbanization rate 39% → projected 45% by 2030 | High | + | | Technological | Cold chain logistics still underdeveloped outside Ho Chi Minh and Hanoi | Only 30% of food supply chain has cold storage (VCCI report) | High | − | | Environmental | Government tightening plastic packaging regulations | Decree on solid waste management (2024) requiring recyclable packaging | Med | − | | Legal | Food safety registration (Decree 15/2018) requires 6-month approval cycle | Foreign food products need Certificate of Free Sale + lab testing in-country | High | − |

Incorrect Application

**Scenario:** Same Vietnam market analysis

**What went wrong:**

• "Our factory is running at 80% capacity" → **Company-level** fact, not macro factor. Violates Iron Law: PESTEL is macro-level only.
• "Technology is changing fast" → No evidence, no specificity. Violates Iron Law: evidence-based, n