The PESTEL Framework

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l Pestal Analysis
The PESTEL framework categorises environmental influences into six main types: political, economic,
social, technological,
environmental legal
Thus PESTEL provides a comprehensive list of influences on the possible success or failure of particular strategies. * Political Factors: For example, Government policies, taxation changes, foreign trade regulations, political risk in foreign markets, changes in trade blocks (EU). * Economic Factors: For example, business cycles, interest rates, personal disposable income, exchange rates, unemployment rates, GDP trends. * Socio-cultural Factors: For example, population changes, income distribution, lifestyle changes, consumerism, changes in culture and fashion. * Technological Factors: For example, new discoveries and technology developments, ICT innovations, rates of obsolescence, increased spending on R&D. * Environmental (‘Green’) Factors: For example, environmental protection regulations, energy consumption, global warming, waste disposal and re-cycling. * Legal Factors: For example, competition laws, health and safety laws, employment laws, licensing laws, IPR laws.

Key drivers for change:
* The environmental factors likely to have a high impact on the success or failure of strategy. * For example, the birth rate is a key driver for those planning nursery education provision in the public sector. * Typically key drivers vary by industry or sector.

Using the Pestal Framework
* Apply selectively –identify specific factors which impact on the industry, market and organisation in question. * Identify factors which are important currently but also consider which will become more important in the next few years. * Use data to support the points and analyse trends using up to date information * Identify opportunities and threats – the main point of the exercise!

Scenarios are detailed and plausible...
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