CBAP v3 Strategy Analysis Practice Test 2025 – Complete Guide to Master Your Certification Exam!

PESTLE analysis is a strategic framework used to examine the external factors that can impact an organization. The acronym stands for Political, Economic, Social, Technological, Legal, and Environmental factors. In this analysis, each component represents a different aspect of the external environment that can influence business operations and decision-making.

In the context of the question, psychological factors are not included as a distinct component of PESTLE analysis. Instead, social factors encompass the broader influences of societal trends, behaviors, and cultural norms, which may indirectly touch on psychological aspects but do not classify them as a standalone component.

This framework helps organizations identify opportunities and threats in their external environment, enabling better strategic planning. The presence of political, social, and environmental factors as key components reinforces the comprehensive nature of PESTLE analysis, while psychological factors, despite being significant in other contexts, do not fit into this specific framework.