Pestel: Management and Factors

Topics: Management, Strategic management, Environment Pages: 4 (1279 words) Published: July 15, 2011
Discuss whether PESTEL analysis is too broad a framework to be of any real benefit to an organisation. Word count: Total: 1103

PESTEL analysis.
There are a lot of different factors that might influence to an organisation. These factors can be internal and external. Nowadays any business should consider both external and internal environment in order to succeed. Organisations should be aware of what is happening in the external environment because it influences to the way existing organisations compete and to creation of new organisations. One of the most common analysis that can be used to analyse an external environment is a PESTEL analysis. This analysis was discussed for the first time by Francis Aguilar who gave the first idea of ‘ETPS’, ‘PEST’ or ‘STEP” – an abbreviation for the four factors: Economical, Technological, Political and Social. Then years later this analysis includes six factors, two more factors were added: Environmental and Legal. (Morrison, 2008) PESTEL stands for Political, Economical, Social, Technological, Environmental and Legal. More precisely, a PESTEL analysis is a technique that evaluate impact of political, economical, social, technological, environmental, legal factors on an organisation. Evaluation of impacts of these factors might help to an organisation to plan and make decisions on its strategy. A PESTEL analysis enables an organisation to understand the external environment in which it operates. An organisation can not control the external envronment and external factors can not directly affect to a profitability of a company as well. However, it is useful to understand the external environment because it might help to maxamise...
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