Description Pestle Analysis Provides A Framework For Investigating And Analysing The External Environment For An Organisation

1548 WordsOct 9, 20157 Pages
Description of the technique PESTLE analysis provides a framework for investigating and analysing the external environment for an organisation. The framework identifies six key areas that should be considered when attempting to identify the sources of change. These six areas are:  Political: Examples of political factors could be a potential change of government, with the corresponding changes to policies and priorities, or the introduction of a new government initiative. These may be limited to the home country within which the organisation operates, but this tends to be rare these days since many changes have an effect in several countries. The development of bodies such as the European Union and the growth of global trade and…show more content…
For example, increased functionality of mobile technology or extended bandwidth for internet transactions can present opportunities to many organisations.  Legal: It is vital to consider factors arising from changes to the law, since the last decade has seen a significant rise in the breadth and depth of the legal regulations within which organisations have to operate. Legal compliance has become such an important issue during this period that many business analysis assignments have been carried out for the purpose of ensuring compliance with particular laws or regulations. Some legal issues may originate from the national government but others, for example EU laws or global accounting regulations, may operate across a broader spectrum. One key issue when considering the legal element of the PESTLE analysis is to recognise laws that have an impact upon the organisation even though they originate from countries other than that in which the organisation is based.  Environmental: Examples of factors arising from concerns about the natural (or Ecological): environment, in other words the ‘green’ issues, include increasing concerns about packaging and the increase of pollution. Porter’s Five Forces framework Description of the technique Porter’s Five Forces analysis is also used to consider the external

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