Introduction to The PESTLE Analysis tool
PESTLE analysis is a useful tool for understanding the “big picture” of the environment in which you are operating, and the opportunities and threats that lie within it. By understanding the environment in which you operate (external to your company or department), you can take advantage of the opportunities and minimize the threats.
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.
For the purposes of this page we will focus on the PESTLE variation of the acronym.
The PESTLE Analysis is often used as a generic 'orientation' tool, finding out where an organization or product is in the context of what is happening out side that will at some point effect what is happening inside an organization.
A PESTLE analysis is a business measurement tool, looking at factors external to the organization. It is often used within a strategic swot analysis (Strengths, Weaknesses, Opportunities and Threats analysis).
PESTLE is an acronym for
Political, Economic, Social, Technological, Legal and Environmental factors,
which are used to assess the market for a business or organizational unit strategic plan
The PESTLE analysis headings are a framework for reviewing a situation, and can also be used to review a strategy or position, direction of a company, a marketing proposition, or idea. There are many variants on this model including PEST analysis and STEEPLE analysis.
Completing a PESTLE analysis can be a simple or complex process. It all depends how thorough you need to be. It is a good subject for workshop sessions, as undertaking this activity with only one perspective (i.e. only one persons view) can be time consuming and miss critical factors.
Use PESTLE analysis for business and strategic planning, marketing planning, business and product development and research...