Which of the following is NOT an element of P.E.S.T.L.E. analysis?

Prepare for the City and Guilds Level 3 Business Administration Exam with comprehensive study materials including flashcards and quizzes. Master key concepts and excel in your test with detailed explanations and practice questions.

P.E.S.T.L.E. analysis is a strategic management tool used to identify and analyze the external macro-environmental factors that can impact an organization. The acronym stands for Political, Economic, Sociocultural, Technological, Legal, and Environmental factors.

The correct answer identifies an option that does not align with the standard elements of the P.E.S.T.L.E. framework. "Sociopolitical" is not a recognized component in P.E.S.T.L.E.; instead, the correct term is "Sociocultural." The inclusion of "sociopolitical" conflates the separate domains of political and social aspects, which are distinctly analyzed in P.E.S.T.L.E. analysis.

The other options, including Economic, Technological, and Legal, are fundamental components of the P.E.S.T.L.E. framework. Economic factors pertain to the economic environment affecting the organization, such as inflation rates and economic growth. Technological factors involve advancements and innovations affecting the industry. Legal factors refer to laws and regulations that businesses must comply with. Each of these elements plays a critical role in assessing the external influences on a company’s strategy and operations.

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