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PESTLE Analysis

The document provides an overview of PESTLE analysis, which is an analytical tool used to assess the macroenvironmental factors that may have a positive or negative impact on a project or organization. It examines political, economic, sociological, technological, legal, and environmental factors. PESTLE analysis helps understand the big picture operating environment and identify opportunities and threats to inform long-term planning. The document outlines each factor of PESTLE analysis and notes that results should analyze impacts now and in the future, as external factors are continuously changing.

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Ritesh Kumar Dubey
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291 views13 pages

PESTLE Analysis

The document provides an overview of PESTLE analysis, which is an analytical tool used to assess the macroenvironmental factors that may have a positive or negative impact on a project or organization. It examines political, economic, sociological, technological, legal, and environmental factors. PESTLE analysis helps understand the big picture operating environment and identify opportunities and threats to inform long-term planning. The document outlines each factor of PESTLE analysis and notes that results should analyze impacts now and in the future, as external factors are continuously changing.

Uploaded by

Ritesh Kumar Dubey
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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PESTLE analysis

Content
• What is PESTLE analysis?
• What does PESTLE analysis include?
Learning objectives
• After this lecture participants will be able to
identify and undertake PESTLE analysis
PESTLE analysis

• PESTLE is an analytical tool which


considers external factors and helps
you to think about their impacts
PESTLE analysis
• Is a useful tool for understanding the “big
picture” of the environment in which you are
operating

• By understanding your environment, you can


take advantage of the opportunities and
minimize the threats.

• This provides the context within which more


detailed planning can take place to take full
advantage of the opportunities that present
themselves.
The factors in PESTLE analysis
• P – Political
– The current and potential influences from political pressures

• E - Economic
– The local, national and world economic impact

• S - Sociological
– The ways in which changes in society affect the project

• T - Technological
– How new and emerging technology affects our project / organization

• L - Legal
– How local, national and global legislation affects the project

• E - Environmental
– Local, national and global environmental issues
PESTLE vs. SWOT
• In contrast to a SWOT, PESTLE encourages you
to think about the wider environment and what
might be happening now and in the future which
will either benefit or be of disadvantage to the
organization, individual etc
– a kind of radar which picks up trends and
developments in the external environment which
can be used to inform longer term planning and
strategy making
PESTLE
• Political:
– Government type and stability
– Freedom of the press, rule of law and levels of bureaucracy and corruption
– Regulation and de-regulation trends
– Social and employment legislation
– Tax policy, and trade and tariff controls
– Environmental and consumer-protection legislation
– Likely changes in the political environment

• Economic:
– Stage of a business cycle
– Current and projected economic growth, inflation and interest rates
– Unemployment and supply of labor
– Labor costs
– Levels of disposable income and income distribution
– Impact of globalization
– Likely impact of technological or other changes on the economy
– Likely changes in the economic environment
PESTLE
• Sociological:
– Cultural aspects, health consciousness, population growth rate, age distribution,
– Organizational culture, attitudes to work, management style, staff attitudes
– Education, occupations, earning capacity, living standards
– Ethical issues, diversity, immigration/emigration, ethnic/religious factors
– Media views, law changes affecting social factors, trends, advertisements,
publicity
– Demographics: age, gender, race, family size

• Technological:
– Maturity of technology, competing technological developments, research funding,
technology legislation, new discoveries
– Information technology, internet, global and local communications
– Technology access, licensing, patents, potential innovation, replacement
technology/solutions, inventions, research, intellectual property issues, advances
in manufacturing
– Transportation, energy uses/sources/fuels, associated/dependent technologies,
rates of obsolescence, waste removal/recycling
PESTLE
• Legal:
– current home market legislation, future legislation
– European/international legislation
– regulatory bodies and processes
– environmental regulations, employment law, consumer protection
– industry-specific regulations, competitive regulations

• Environmental:
– Ecological
– environmental issues, environmental regulations
– customer values, market values, stakeholder/ investor values
– management style, staff attitudes, organizational culture, staff engagement
PESTLE analysis and projects
• It is possible to use the PESTLE analysis on projects
as well for organizations
• It is not always needed, especially if the projects are
small
• If PESTLE analysis is used for a project, then the
focus should be on solving the “focal problem” and
analyze how the external environment is affecting the
process of solving the “focal problem”

– e.g. the guidelines from the European Commission do not


include PESTLE in their logical framework approach
Issues of concern
• The main problem with these external PESTLE factors is
that they are continuously changing

• Therefore PESTLE analysis should include a thorough


analysis of what is affecting the organization or a project
Now, and what is likely to affect it in the Future

• The result of a PESTLE analysis is usually a list of


positive and negative factors that are likely to affect a
project
– However, by themselves, theses factors they mean very little
– It is important to bear in mind, that PESTLE analysis requires
careful Application of results
Similar analysis
• Other forms of PEST - PESTLE, PESTLIED, STEEPLE and
SLEPT:
Some people prefer to use different flavors of PEST analysis, using
other factors for different situations. The variants are:

• PESTLE/PESTEL: Political, Economic, Sociological, Technological,


Legal, Environmental;

• PESTLIED: Political, Economic, Social, Technological, Legal,


International, Environmental, Demographic;

• STEEPLE: Social/Demographic, Technological, Economic,


Environmental, Political, Legal, Ethical; and

• SLEPT: Social, Legal, Economic, Political, Technological

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