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.
The 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
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