Developing a Multi-Criteria Decision Making Model for PESTEL Analysis

By Ihsan Yüksel. 2012

351 citations recorded by the source corpus.

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.

Subfields: Industrial and Manufacturing Engineering, Management Science and Operations Research, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/8ff84ff68ca2f0d11106b9264f51a985ad248d62

Citations in the corpus

• A Review of Global Challenges and Survival Strategies of Small and Medium Enterprises (SMEs) (2020, neutral): “According to Yuksel (2012), PESTEL has two primary functions: allowing to identify the environment in which it operates and provides data and information that enable the company to predict situations and circumstances in the future.”