Developing a Multi-Criteria Decision Making Model for PESTEL Analysis

Ihsan Yüksel


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 of
PESTEL does not adequately support such an approach. PESTEL analysis, as it stands, mainly provides a
general idea about the macro environmental conditions and situation of a company. This study presents a model
to address problems encountered in the measurement and evaluation process of PESTEL analysis. The integrated
structure 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 using
ANP. The PESTEL analysis model proposed in the study could determine the extent to which the macro
environment of a company provides suitable conditions to achieve the aims of the company.

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