Which item is NOT a PESTLE factor?

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Multiple Choice

Which item is NOT a PESTLE factor?

Explanation:
The main idea tested is distinguishing external macro-environment factors from internal capabilities. PESTLE analyzes external forces that can affect a business—Political, Economic, Social, Technological, Legal, and Environmental. Internal process efficiency, however, describes how well a company runs its own operations and processes. That is an internal capability, not something in the external environment, so it doesn’t belong in PESTLE. The other items listed are examples of external factors in the macro environment, which is why they fit PESTLE. Internal process efficiency would be more relevant to internal analysis or a SWOT assessment rather than PESTLE.

The main idea tested is distinguishing external macro-environment factors from internal capabilities. PESTLE analyzes external forces that can affect a business—Political, Economic, Social, Technological, Legal, and Environmental. Internal process efficiency, however, describes how well a company runs its own operations and processes. That is an internal capability, not something in the external environment, so it doesn’t belong in PESTLE. The other items listed are examples of external factors in the macro environment, which is why they fit PESTLE. Internal process efficiency would be more relevant to internal analysis or a SWOT assessment rather than PESTLE.

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