PESTLE (also called PEST or SLEPT) analysis is a framework used frequently in the strategic management of organisations to get an understanding of the external environment. It helps make it easier for an institution to work out a way to achieve its objectives and goals.
PESTLE study is a scanning of factors in the macro surroundings. The elements examined are rarely influenced by organisations but can themselves significantly affect the operations and viability of both profit and non-profit entities. They comprise political, economic, social, technological, legal and environmental variables.
POLITICAL. Stability of government and governance atmosphere, world balance of power and main policies of leadership, are some of the key considerations.
ECONOMIC. Important factors include rate of economic growth, inflation and interest levels, and financing environment.
SOCIAL. The norms, values and beliefs of a society, and its attitude toward certain products, services or organisations cannot be ignored. Other major aspects are demographic features like age and income groupings.
TECHNOLOGICAL. What are the current scientific levels like? How are they an inhibition or enhancement of aspirations? What advancements in science and technology are on the horizon? How are they likely to affect operations, say, in terms of manufacturing processes, advertising or distribution?
LEGAL. It is mainly about the laws of the land and how they are applied. These can basically be supportive of or unfavourable to the mission and vision of an establishment.
ENVIRONMENTAL. Environmental issues are such as call for preservation of the relatively fragile constituents of the natural world, like plant and animal life, and the atmosphere of the earth, as an organisation carries out its programmes.
The PESTLE factors generally have ever-changing character. They also apply in different ways to different commercial and non-commercial concerns. It is, nonetheless, the relevant factors that need attention.
Rupert Chimfwembe
29 December 2016
