A PESTLE Analysis is one of the most important frameworks of macro-environmental scanning, framework which comprises the most important factors used in environmental scanning, as part of advanced strategic management. Throughout the last few years, the acronym PESTLE has suffered a number of changes, but PESTLE seems to be the most commonly spread and almost unanimously accepted “concept”.
PESTLE stands for “Political, Economic, Sociological, Technological, Legal and Environmental” factors. The questions to ask yourself are: * What are the key political factors likely to affect the industry? * What are the important economic factors?
* What cultural aspects are most important?
* What technological innovations are likely to occur?
* What current and impending legislation may affect the industry? * What are the environmental considerations?
Each and every category of factors is of crucial importance to advanced strategic management, and the PESTLE analysis in itself is definitely a must for any business or company, regardless of its industry. It is true that the importance of each category of factors will always vary from business to business and from company to company, but nonetheless PESTLE remains a mandatory analysis technique that is usually a part of the larger and more comprehensive SWOT analysis. PESTLE helps a company determine exactly how various types and categories of factors influence its “well-being”. As aforementioned, the same factors will influence different companies in different ways. For instance, an online business will be less concerned about environmental factors while a waste management company will have to pay extra attention to environmental factors. To further understand what PESTLE is and how it can be used, it is very important that you know a thing or two about each individual category of factors. The below descriptions should help you gain a better understanding of each factor and of just how...