8. pestle analysis

PESTLE analysis

Aims

• Prepare a PESTLE analysis for a given situation and use it to analyse the impact of the external environment on a firm.

• Evaluate the impact on a firm’s objectives and strategy of a change in any of the PEST/PESTLE factors.

What is it?

• It’s a way of working out what is going on ‘out there’ so you can then respond to it.

POLITICAL

• Environmental protection/legislation• Consumer protection• Government’s attitude• Competition regulation• Advertising standards

http://images.google.co.uk/imgres?imgurl=http://www.richard-seaman.com/Wallpaper/Travel/Europe/DigitalHousesOfParliament.jpg&imgrefurl=http://www.richard-seaman.com/Wallpaper/Travel/Europe/index.html&usg=__Hm6mkLiimvOj08mhiwWAkyBvM8U=&h=864&w=1152&sz=408&hl=en&start=1&tbnid=H-12krGw1KoNZM:&tbnh=112&tbnw=150&prev=/images%3Fq%3Dparliament%26gbv%3D2%26hl%3Den%26sa%3DX

http://images.google.co.uk/imgres?imgurl=http://www.un.int/iom/UN.jpg&imgrefurl=http://www.un.int/iom/IOM-HLD.html&usg=__9-LlQsqJHT3nOveE7pGcRNHgeVc=&h=1442&w=1087&sz=203&hl=en&start=2&tbnid=3nujWwWy47OaIM:&tbnh=150&tbnw=113&prev=/images%3Fq%3Dun%26gbv%3D2%26hl%3Den

Economic

• Economic growth• Taxation international trade• Exchange Rate• Employment law• Health and Safety law• Inflation• Consumer confidence• Minimum wage

Social• Income distribution• Demographics• Labour & Social mobility• Lifestyle changes• Attitudes to work and leisure• Education• Fashion and Fads• Health & Welfare• Living conditions

http://images.google.co.uk/imgres?imgurl=http://publish.uwo.ca/~kolson2/fashion4.jpg&imgrefurl=http://publish.uwo.ca/~kolson2/FashionGroup.html&usg=__0h48yD4AWAGGihKz_CR20H1O7K4=&h=869&w=1262&sz=393&hl=en&start=3&tbnid=60q7Nvmui9MjAM:&tbnh=103&tbnw=150&prev=/images%3Fq%3Dfashion%26gbv%3D2%26hl%3Den

http://images.google.co.uk/imgres?imgurl=http://www.learningcurve.gov.uk/homefront/women/graphics/f_s2.jpg&imgrefurl=http://www.learningcurve.gov.uk/homefront/women/factories/source2.htm&usg=__ryUzq4CEaWpqMmhJznDYDsbHGzE=&h=660&w=446&sz=47&hl=en&start=15&tbnid=d4-4IoLHDbxB1M:&tbnh=138&tbnw=93&prev=/images%3Fq%3Dwomen%2Bat%2Bwork%26gbv%3D2%26hl%3Den

http://images.google.co.uk/imgres?imgurl=http://www.x-entertainment.com/updates/pics/ttv2.jpg&imgrefurl=http://x-entertainment.com/updates/2007/11/15/turkey-tv-dinners-pomegranate-7-up/&usg=___ITKHyxw5UFZA12P2ZUXs1BpAKY=&h=337&w=452&sz=61&hl=en&start=7&tbnid=25ImVkFEeD7FvM:&tbnh=95&tbnw=127&prev=/images%3Fq%3Dtv%2Bdinners%26gbv%3D2%26hl%3Den

Technological

• Changes in physical sciences• Internet• Energy use and costs• Rates of technological obsolescence• New discoveries• Govt and Industry focus on tech• Govt spending on research

http://images.google.co.uk/imgres?imgurl=http://www.cnsx.ca/Storage.asp%3FStorageID%3D88814%26SiteLanguageID%3D1&imgrefurl=http://www.cnsx.ca/Page.asp%3FPageID%3D749%26SiteNodeID%3D160&usg=__-ijpPpCG8V2jvWOP-DaVrNMd2WM=&h=1174&w=1280&sz=176&hl=en&start=1&tbnid=F13K5baDJApOMM:&tbnh=138&tbnw=150&prev=/images%3Fq%3Dtechnology%26gbv%3D2%26hl%3Den

http://images.google.co.uk/imgres?imgurl=http://www.unescap.org/unis/press/2007/aug/space.jpg&imgrefurl=http://www.unescap.org/unis/press/2007/aug/n38.asp&usg=__7oRAEi9bslFC3JFlI2PXNpdBlMU=&h=518&w=600&sz=28&hl=en&start=18&tbnid=Gzsg3671OA2sHM:&tbnh=117&tbnw=135&prev=/images%3Fq%3Dtechnology%26gbv%3D2%26hl%3Den

Legal

• Employment law• Health and Safety• Taxation both corporate and consumer• Other regulations• International trade barriers• Strength of the rule of law

http://images.google.co.uk/imgres?imgurl=http://media.schadenfreude.net/2009/05/barrister.jpg&imgrefurl=http://www.schadenfreude.net/2009/05/19/i-dont-know-about-you-but-i-think-i-trust-mr-sean-atteta.php&usg=__fAPBNp_ZGCxfeGnLRmxbxoO3P7M=&h=238&w=250&sz=17&hl=en&start=4&tbnid=_5w1zy2oX8G5OM:&tbnh=106&tbnw=111&prev=/images%3Fq%3Dbarrister%26gbv%3D2%26hl%3Den

http://images.google.co.uk/imgres?imgurl=http://www.campusaccess.com/images/law-school.jpg&imgrefurl=http://www.campusaccess.com/education/law.html&usg=__Fzz7aDjIKd3b7c0wZ0hmnoQqpjE=&h=360&w=333&sz=8&hl=en&start=1&tbnid=sUUsuP-KrXDOBM:&tbnh=121&tbnw=112&prev=/images%3Fq%3Dlaw%26gbv%3D2%26hl%3Den

Environmental

• How people’s perception and reaction to environmental issues can affect a business.

Exam tip

• Remember it is not enough to identify the factor, you must say why it is where it is.

http://images.google.co.uk/imgres?imgurl=http://siobhan316.files.wordpress.com/2009/05/pic9_students_in_exams_hall.jpg&imgrefurl=http://siobhan316.wordpress.com/2009/05/18/fin/&usg=__T3KeXTUAEVrIeJWVMQxDdybW9p8=&h=502&w=606&sz=351&hl=en&start=10&tbnid=e-wY5L4yfHCgSM:&tbnh=113&tbnw=136&prev=/images%3Fq%3Dexams%26gbv%3D2%26hl%3Den

Task

• In pairs you will be given a company to prepare a PESTLE analysis for.

• Both pairings and the task will be decided randomly!

Task

• The first job is to research some issues and background about the company.

• Where am I going to get this info?

• This will require a bit of thought and subtlety on your part. You must go beyond the obvious!

Task

• Brainstorm the PESTLE with your partner.• Work out how you are going to present

this information.

• Remember it is not enough to identify the factor, you must say why it is where it is.

Task

• Write a short piece explaining how the firm should exploit/avoid some of the issues you have identified.

8. pestle analysis

Education

Transcript of 8. pestle analysis