Small Business Strategic P.E.S.T.L.E Analysis Overview
What is a PESTLE Analysis?
Planning Tools
A P.E.S.T.L.E analysis is an approach used in the process of strategic planning to review the external environment affecting a business now & in the future. The P.E.S.T.L.E analysis reviews this through a broad range of factors and stands for: P - Political environment E - Economic environment S - Social & consumer Trends T - Technological & scientific environment L - Legal & Regulatory Environment E - Environmental & Green trends
PESTLE is only one format that is used for this type of analysis. There are several variants of this type of approach e.g. PEST, STEEP, STEEPLE etc. The larger and more complex a business becomes, the more likely it is that an analysis such as PESTLE will be useful. However, even in a small company, the PESTLE analysis may uncover a few key trends that make a significant difference.
The External Environment Analysis
The other parts of an external review include a market review and competitor reviews. These provide the base for assessing opportunities and threats in strategic planning for a business; often then summarised in a S.W.O.T analysis in the business’ marketing plan.
Why do we need this?
Whether you use the P.E.S.T.L.E. format or another, the important thing is that it is critical to understanding what environment your business will be facing in the future and how that may affect the market your business operates in and the business itself.
Do I need to cover every factor listed in the PESTLE Analysis?
The short answer is ‘yes’. However, when completing these external factors, unless your business is operating specifically in a related industry or area, then some environmental factors will probably involve a limited number of trends that impact your business. You may
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not at first be able to think of any factors (in some cases). The better quality time you...