L for Legal E for Environmental The political factors account for all the political activities that go on within a country and if any external force might tip the scales in a certain way.
Tax policy; environmental regulations; trade restrictions and reform; tariffs; political stability Economic: Cultural norms and expectations; health consciousness; population growth rates; age distribution; career attitudes; health and safety Technological: New technologies are continually emerging for example, in the fields of robotics and artificial intelligenceand the rate of change itself is increasing.
Global warming and the increased need to switch to sustainable resources; ethical sourcing both locally and nationally. By analysing those factors, organisations can gain insight into the external influences which may impact their strategy and business decisions.
It allows HR and senior managers to assess any risks specific to their industry and organisation, and use that knowledge to inform their decisions.
It can also help to highlight the potential for additional costs, and prompt further research to be built into future plans. This means following these steps: Identify the scope of the research. It should cover present and possible future scenarios, and apply to areas of the world in which the business operates.
Decide how the information will be collected and by whom. Data gathered is often more rich in content when more than one person contributes to collecting it. Identify appropriate sources of information. These could be stakeholders looking for HR to address specific issues or current policies that require updating.
Please see our practical, ready-to-use template below. Identify which of these factors listed above are most important or could cause issues. Identify the business specific options to address the issues, as demonstrated in the example template. Write a discussion document for all stakeholders.
Disseminate and discuss the findings with stakeholders and decision makers.
Decide what actions need to be taken, and which trends to monitor on an ongoing basis. Organisations that regularly and systematically conduct such analyses often spot trends before others, thus providing competitive advantage.A PEST analysis examines how external factors can affect a business's activities and performance.
Introduction to The PESTLE Analysis tool. PESTLE analysis is a useful tool for understanding the “big picture” of the environment in which you are operating, and the opportunities and threats that lie within it.
A PESTLE (also known as PESTEL and PEST) analysis is a strategic tool to analyse your business environment. A PESTLE analysis takes into consideration four factors: Political, Economic, Social, Technological, Legal and Environmental. A PESTLE analysis is more oriented to the identification of external factors that can impact your company.
A PEST analysis looks at how external factors can affect a business's activities and performance.
Here's how to create and use one. The PEST analysis template is a strategic business tool tracking macro-economic factors which can impacting businesses now and in the future.
The PEST analysis template is a strategic business tool tracking macro-economic factors which can impacting businesses now and in the future.