PESTLE Analysis
Introduction
PESTLE Analysis is used to analyse and identify the factors that are external to an organisation, that have an impact on it. The technique helps to perform a thorough investigation of the global context within which the organisation operates. Given below is the expanded form of PESTLE...
- P - Impact of Political factors (local, regional, national and international)
- E - Impact of Economic factors (local, national, global)
- S - Impact of Socio-cultural factors (trends in personal and professional lives)
- T - Impact of Technological factors (platforms, technologies and trends)
- L - Impact of Legal factors ( national and global legislations and regulations)
- E - Impact of Environmental/Ecological factors (national and global issues)
PESTLE analysis gives a handy reference for considering the key areas that are potential sources of change and/or impact for the organisation Once identified, the key factors that could potentially have a significant impact on the organisation are prioritised. Based on the impact that these factors may have, the actions required to counter or minimise the impact are then defined and implemented.
Some of the other forms of PESTLE analysis technique are PEST (Really? :-), PESTEL (well, isn't it the same as PESTLE?), PESTLIED (add a few more) and STEEPLE. Let us look at more the prominent ones:
- STEEPLE - Socio-cultural, Technological, Environmental (also Ecological), Economic, Political, Legal, Ethical
- PESTLIED - Political, Economic, Socio-cultural, Technological, Legal, International, Environmental (also Ecological), Demographic
This technique helps identify the external environmental factors that could potentially have an impact on the organisation
Senior management, Executives, Board of directors, Strategy consultants
Provides insights on external factors that help identify the opportunities and threats in the SWOT Analysis.
® and Analyst Zone® © Since 2017 Texavi Innovative Solutions