For example, opportunities can come from new technologies that help you reach new customers, from new funding streams that allow you to invest in better equipment, and from changed government policies that open up new markets. Threats can include deregulation that exposes you to intensified competition; a shrinking market; or increases to interest rates, which can cause problems if your company is burdened by debt. Find out what forces of change are affecting your business environment.
There are many macro-environment factors that effect strategic planning: New laws, tax changes, trade barriers, demographic change. Macro-environment factors includes all the factors that influence an organization, but are out of its direct control. Macro-environment factors tend to have a long term impact.
PESTLE stands for "Political, Economic, Social, Technological, Legal and Environmental" and is used for business and strategic planning, marketing planning, organizational change, business and product development and research reports.
By understanding these external environments, organizations can maximize the opportunities and minimize the threats to the organization. Political - What are the political factors that are likely to affect the business?
Economic - What are the economic factors that will affect the business? Sociological - What cultural aspects likely to affect the business? Technological - What technological changes that may affect the business?
Legal - What current and impending legislation that will affect the business? Environmental- What are the environmental considerations that may affect the business? Political Factors Political factors relates to the pressures and opportunities brought by political institutions and to what degree the government policies impact the business.Compiling and Using a “PESTLE” Analysis A PESTLE analysis is a tool that acts as a prompt to the staff and governors involved in the analysis of the developments in the school’s environment that could affect its risk profile.
PESTLE Analysis A PESTLE analysis for Mydin must consider all the important external factors impacting on the company.
These factors may have political, economic, social and culture, technological, legal or environmental dimensions. PEST Analysis is a simple and widely used tool that helps you analyze the Political, Economic, Socio-Cultural, and Technological changes in your business environment.
This helps you understand the "big picture" forces of change that you're exposed to, and, from this, take advantage of . PEST Analysis Variants. Traditionally, PEST analysis focuses on political, economic, sociological and technological factors, but increasing awareness of the importance of legal, environmental and cultural factors has led to the evolution of a growing number of variants.
PESTLE Analysis is an analytical tool for strategic business planning. PESTLE is a strategic framework for understanding external influences on a business. PESTLE analysis, which is sometimes referred as PEST analysis, is a concept in marketing principles.
Moreover, this concept is used as a tool by companies to track the environment they’re operating in or are planning to launch a new project/product/service etc.