Pestle tool

Pestle analysis pdf

Environmental factors include ecological and environmental aspects such as weather, climate, and climate change , which may especially affect industries such as tourism, farming, and insurance. This helps you shape what you're doing, so that you work with change, rather than against it. Economic - What are the economic factors that will affect the business? Examples include: Technology and communications infrastructure, consumer access to technology, emerging technologies, automation, legislation around technology, research and innovation, intellectual property regulation, competitor technology and development, technology incentives, etc. In addition, you want to be aware of any potential changes in legislation and the impact it may have on your business in the future. What are their views on business policy, and on other policies that affect your organization? Questions to ask: How does our physical environment affect us and vice versa? Furthermore, companies may change various management strategies to adapt to social trends caused from this such as recruiting older workers. This refers to automation, research and development and the amount of technological awareness that a market possesses. It reveals the direction of change within your business environment. It is as below: 1. Other factors for the various offshoots include: Demographic factors include gender, age, ethnicity, knowledge of languages, disabilities, mobility, home ownership, employment status, religious belief or practice, culture and tradition, living standards and income level. Factors include interest rates, employment or unemployment rates, raw material costs and foreign exchange rates.

And is there a trend towards regulation or deregulation? Use PESTLE analysis for business and strategic planning, marketing planning, business and product development and research reports. How is this likely to change in the next few years?

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Factors include interest rates, employment or unemployment rates, raw material costs and foreign exchange rates. Governments use interest rate control, taxation policy and government expenditure as their main mechanisms they use for this. Environmental factors These factors include all those that influence or are determined by the surrounding environment.

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Legal analysis takes into account both of these angles and then charts out the strategies in light of these legislations.

Specifically the PEST or PESTLE analysis is a useful tool for understanding risks associated with market growth or decline, and as such the position, potential and direction for a business or organization.

This can include — government policy, political stability or instability in overseas markets, foreign trade policy, tax policy, labour law, environmental law, trade restrictions and so on.

Pestle analysis template

These can determine barriers to entry , minimum efficient production level and influence the outsourcing decisions. Factors include employment legislation, consumer law, healthy and safety, international as well as trade regulation and restrictions. Do they help or hinder our business? Step 1: Brainstorm Factors Political Factors to Consider When is the country's next local, state, or national election? Are customers' levels of disposable income rising or falling? Economic: This factor takes into consideration all events that affect the internal and external economic environment. These factors include — population growth, age distribution, health consciousness, career attitudes and so on. PEST Analysis looks at "big picture" factors that might influence a decision, a market, or a potential new business. It is a good subject for workshop sessions, as undertaking this activity with only one perspective i. And is there a trend towards regulation or deregulation? It is clear that companies need to know what is and what is not legal in order to trade successfully. By knowing what is going on technology-wise, you may be able to prevent your company from spending a lot of money on developing a technology that would become obsolete very soon due to disruptive technological changes elsewhere. Is the political environment stable or likely to change? These factors can affect how a company operates, its costs, and the demand for its products.

In addition, you want to be aware of any potential changes in legislation and the impact it may have on your business in the future. How could this change government or regional policy?

pestle analysis reference

It is a good subject for workshop sessions, as undertaking this activity with only one perspective i.

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PESTLE Analysis, PESTLE Analysis Template