Pestle Analysis

1788 Words8 Pages
PESTLE ANALYSIS What is PESTLE analysis? PESTLE stands for - Political, Economic, Sociological, Technological, Legal, Environmental. The term PESTLE has been used regularly in the last 10 years and its true history is difficult to establish. Various other similar acronyms have been used including ETPS, STEP, PEST, and STEEPLE. The term PESTLE is particularly popular on HR and introductory marketing courses in the UK. PESTLE analysis is in effect an audit of an organisation's environmental influences with the purpose of using this information to guide strategic decision-making. The assumption is that if the organisation is able to audit its current environment and assess potential changes, it will be better placed than its competitors to…show more content…
The PESTLE process Before starting a PESTLE analysis it is important to think through the process that is going to be followed. Steps include: • decide how the information is to be collected and by whom (a team approach is much more powerful than one person’s view) • identify appropriate sources of information • gather the information - it is useful to use a template as the basis for exploring the factors and recording the information. An example of such a practical and ready-to-use template created to accompany this factsheet can be found on the RapidBI website. o Go to the template • analyse the findings • identify the most important issues • identify strategic options • write a discussion document • disseminate and discuss the findings • decide which trends should be monitored on an ongoing basis and what actions need to be taken. PESTLE analysis tips Some useful tips for carrying out a PESTLE analysis include: • DO get other people involved to gain multiple perspectives. • DO exploit any expertise and resources that are already available within the organisation. • DO use PESTLE analysis in conjunction with other techniques, such as SWOT analysis (standing for Strengths, Weaknesses, Opportunities, Threats - see our factsheet for more information), Porter's five forces (see Useful links and Further reading below), competitor analysis or scenario planning etc. o Go to our SWOT

More about Pestle Analysis

Open Document