Developing a Multi-Criteria Decision Making Model for PESTEL Analysis

Although the conceptual structure and nature of PESTEL (Political, Economic, Socio-cultural, Technological,Environment and Legal) analysis requires an integrated approach to analysis, the technical framework ofPESTEL does not adequately support such an approach. PESTEL analysis, as it stands, mainly provides ageneral idea about the macro environmental conditions and situation of a company. This study presents a modelto address problems encountered in the measurement and evaluation process of PESTEL analysis. The integratedstructure of PESTEL factors and sub-factors were modeled by AHP (Analytic Hierarchy Process) and ANP(Analytic Network Process) techniques. Relationships between PESTEL factors were determined by DEMATEL(Decision Making Trial and Evaluation Laboratory). Global weights of the sub-factors were calculated usingANP. The PESTEL analysis model proposed in the study could determine the extent to which the macroenvironment of a company provides suitable conditions to achieve the aims of the company.