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3.2IntermediateModule 03 · Know Your Market

PESTLE Analysis

You're entering a new market, geography, or sector and you need to understand the

The prompt

Copy & paste ready
3.2PESTLE Analysis
Act as a macro-environment analyst using the PESTLE framework. Business context : [YOUR INDUSTRY AND WHAT YOU DO] Market / geography : [SPECIFIC MARKET YOU ARE ANALYSING] Decision : [WHAT YOU ARE DECIDING BASED ON THIS ANALYSIS] Analyse all six PESTLE dimensions: POLITICAL : Government, policy, trade, stability ECONOMIC : Growth, inflation, consumer spending, rates SOCIAL : Demographics, culture, behaviour trends TECHNOLOGICAL : Innovation, AI, digital adoption, disruption LEGAL: Regulations, compliance, IP, data law ENVIRONMENTA L : Sustainability, ESG, climate impact For each: give 2–3 specific factors and their likely impact on my business. Flag the top 2 highest-risk factors I should act on now. Innovation Impact Cultural Trends Technological advancements Social influences Market Conditions Sustainability Concerns Economic factors Environmental factors Government Regulatory Influence Compliance PESTLE Political landscape Legal framework Analysis
LabelsReplace theseSwap the role below

LabelsReplace theseSwap the role below

Pro tip, from the book

Run PESTLE before entering any new geography especially India, Southeast Asia, or the Middle East where political and legal environments change faster than most founders expect. The factors that kill international expansion are almost always in the P and L dimensions, not the market size.

Who should run this prompt

Module role profile

Who should read your competitive landscape? Every market looks different depending on where you are standing. A market researcher sees data. A competitor's strategist sees opportunity. A customer sees none of your positioning — only their own problem. Use this page to choose the right lens before drawing any conclusions about the market you operate in.

Choose any role to drop it into the prompt above. Only the highlighted opening clause changes — the rest of the prompt stays exactly as printed.

Internal rolesThink from inside the organisation
Outside perspectivesChallenge your blind spots

◆◆◆◆◆ → ◆ seniority, board level down to specialist outside the organisation

How to make any role sharper

  1. Add years of experience: "...with 15 years in enterprise SaaS" produces different depth than just the title.
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  3. Add their communication style: "Be direct. Flag risks first. No jargon." changes the tone entirely.
See also: 1.3 Role Prompting - The Expert Chair

Use this when

The problem it solves

external forces that could accelerate or kill your plan political, economic, social, technological, legal, and environmental.

How the framework works

From the printed page

Developed by Francis Aguilar at Harvard in 1967, PESTLE is a macro-environment scan across six dimensions: Political (government policy and stability), Economic (growth, inflation, interest rates), Social (demographics, culture, behaviour trends), Technological (innovation, disruption, digital adoption), Legal (regulations, compliance), Environmental (sustainability, climate, physical). AI has broad knowledge across all six dimensions and can generate a detailed PESTLE in minutes when given the right context.

The method, in four moves

Do these in order
1

Define the market, geography, and industry before prompting context is everything.

2

Ask AI to flag which PESTLE factors are currently most active or fast-changing.

3

Turn the highest-impact factors into assumptions in your Lean Canvas.

4

Revisit PESTLE before any major market entry or strategic shift. Read the macro environment before it reads you Before Monzo launched in the UK, its team ran a PESTLE analysis and identified two critical factors: FCA regulatory changes opening challenger bank licensing, and a generational shift in how under-35s trusted traditional banks. Neither was in the existing competitor analysis. Those two factors not the product features became the foundation of Monzo's go-to-market timing and positioning. IN PRACTICE

Where the framework comes from

Francis Aguilar, Harvard Business School — Scanning the Business Environment, 1967

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