The PESTEL framework provides a broad analysis of six major organizational factors; Political, economic, social, technological, environmental, legal. The origin of the PESTEL diagnostic model is fairly ambiguous, as it has only recently become a staple in corporate human resource environments within the last ten to fifteen years. The model itself is a broad snapshot of an organization’s big picture. In other words, the PESTEL diagnostic model can be used to help identify strengths, weaknesses, opportunities, and threats. According to Evans and Richardson, “organizations will need to examine competitors (current and potential), in order to determine their capabilities and strategies before evaluating their likely actions or responses” (Evans and Richardson 2007). This suggests further analysis is required after the production of a PESTEL analysis. The PESTEL framework was chosen for a few reasons. First, the analysis creates a general map of the external environments of each organization. Second, a fairly significant portion of mergers and acquisitions occur because of external forces. The PESTEL analysis determines the external forces at play for each organization. Third, the PASTEL analysis external forces only qualify if they are defined as a change in the environment. In regards to the America Online and Time Warner merger, a PESTEL diagnostic analysis can be applied to both organizations. First is an overview of the political external environment. Due to the nature of the merger in discussion, the political environment will also include a review of the legal environment. The biggest external factor affecting the potential merger between America Online (AOL) and Time Warner were the anti-trust laws in place to regulate corporate mergers and acquisitions. Anti-trust regulations are in place for many reasons, one of which includes the approval of