PESTLE is a tool used by companies to analyze or to keep track of the environment in which it is

operating. Accenture uses the PESTLE analysis tool to analyze its macro environment. PESTLE
stands for Political, Environmental, Social, Technological, Legal & Economic. Even a small
change in the macro environment can affect its performance along with the other companies
existing in Information Technology Services.
Political
The political structure must be stable to retain the long-term profitability goal of Accenture in-
country or market. As it is an MNC & established in different countries, it exposes to the
different political environment and the political risk associated with it. Below are the factors
which are responsible for the performance of Accenture:
 Indian political structure is stable as it has a clear majority government
 US govt. cut down the tax benefit of the companies which are outsourcing IT work
 PSU’s and govt based companies giving IT projects to Indian companies
 Attack by terrorist or war
Economic
Inflation rate, interest rate savings rate, foreign exchange rate are the different macro-
environment factors which determines the demand and investment in a particular country while
microenvironment factors such as competition norms can affect the competitive advantage of a
firm. Below are the factors which have affected the economic performance of Accenture:
 Growth in real estate price can increase the rental expenses
 Fluctuations in the exchange rate
 Domestic IT spending and global IT demand
 Lower attrition rate because of recession
Social
Culture of various societies in a country, their attitude, and way of doing thing impacts culture of
any organization. Below are the social factors that the leadership of Accenture plc should
analyze:
 Language spoken by citizens of a particular country
 No of technical universities and institutes in country offering IT education
 Working-age population
Technology
Organizations should do technological analysis along with the speed at which technology is
disrupting in particular industry.
 Good IT infrastructure
 Largest telephonic network
 Innovation in IT technologies to save cost
Legal
Legal frameworks and the institution responsible for protecting the rights of an organization
must be robust. Before entering into the market, a firm should investigate the legalities to avoid
theft of the organization.
 Employees working under bonds which ethically wrong
 IT SEZ requirements
 IT act by the Indian government to provide a legal environment for proper operation
 Tax benefit by government to protect the interest of company
Environmental
Environmental standard is the important factor to analyze before entering into any market or to
start a new business in the existing market.
 Carbon sensitive environment
 Energy-efficient equipments
 Availability of water and its consumption