Pestle Analysis

PESTLE ANALYSIS

What is PESTLE analysis?

• Effect an audit of organisation’s environmental influences with the purpose of using this information to guide strategic decision making

• To help make decision and to plan for future event

• Useful tool for understanding the big picture environment in which an organization is operating.

• Used to review a strategy or position, direction of a company, a marketing proposition or idea.

The PESTLE model

Political: What is happening politically environment in which business operates, including areas such as tax policy, employment law, environmental regulations, trade restriction and reform, tariffs and political stability

Economic: what is happening within the economy. For example economic growth/decline, interest rates, exchange rates and inflation rates, wages rates, minimum wages, working hours, unemployment (local and national), credit availability and cost of living

Sociological: What is occurring social in the markets in which business operate or expect to operate, cultural norm and expectations, health consciousness, population growth rate, age distribution, career attitudes, emphasis on safety, global warming

Technological: What is happening in technology-wise which can impact what you do. New technologies are continually being developed and the rate of change itself increasing.

Legal: What is happening with changes to legislation. This may impact employment, access to materials, quotas, resources, imports/exports, tax and etc.

Environment: What is happening with respect to ecological and environmental issues. Many of these factors will be economic or social in nature.

Advantages and disadvantages of using PESTLE analysis.

|ADVANTAGES |DISADVANTAGES |

|It is a simple framework |Some...