Scenario analysis has allowed a free format examination of the issues; this next stage is the external analysis looking for specific logical deductions to feed into the strategy formulation. This chapter uses the well-known and often used PESTEL analysis. The output from the PESTEL analysis is a collection of observations, issues and factors arising from the analysis of the macro external environment. A number of factors may coalesce into themes and link into logical chains. An obvious example is: concern over climate change caused by emissions from fossil fuel; connects with economic consequences of high fuel costs; connects with the potential of low-carbon technologies; and comes together in a persuasive case to channel corporate resources into solutions that replace fossil-fuel dependency. It will not always be so obvious and the most valuable insights may take considerable effort to tease out through reflecting at the end of the PESTEL analysis on what should be carried forward in the analysis.