A financial services company is evaluating expansion into a new state. Its management conducts a macro-environment analysis covering government pension regulations, demographic changes in working-age population, the rise of digital distribution platforms, and environmental sustainability requirements for new office infrastructure. Which strategic framework is being applied?

PESTEL is a macro-environmental strategic framework comprising six dimensions: Political (government regulations, policy), Economic (market conditions, interest rates), Social (demographic trends, cultural factors), Technological (digital platforms, innovation), Environmental (sustainability, ecological requirements), and Legal (laws, compliance). The scenario describes an analysis spanning regulatory factors (Political/Legal), workforce demographics (Social), digital distribution (Technological), and sustainability requirements (Environmental) — precisely the scope of PESTEL. SWOT analyses internal strengths and weaknesses alongside external opportunities and threats. Porter's Five Forces examines industry competitive dynamics. The BCG Matrix classifies business units by market growth and share.