introduction to pestle analysis
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CHAPTER 1 1.1 INTRODUCTION All organizations need to identify external factors within their environment that could have an impact on their operations. Many of these will be things that the organization has no control over, but the implications of which need to be understood. A popular tool for identifying these external factors is the PES!E Analysis, which can be used to help you consider Political, Ec onomic, Social, echnologi cal, !e gal, and Environmental issues. his process of identification should involve a variety of different disciplines across your organization so that a full picture of these external factors can be built up. hese factors can then be fully researched and analysed. As organizations become more globalized, expanding their existing borders, the PES!E techni"ue ensures that they thoroughly "uestion each of these factors and consider their impact. he PES!E Analysis provides you with a framewor# that enables you to investigate your external envir onment by as#ing "ue stions for each factor and discussing the li #ely implications he PES!E tool is a powerful techni"ue for analysing your environment but it should represent $ust one component of a comprehensive strategic analysis process. %t is also a useful techni"ue to #now if you are part of a strategic pro$ect team. %n all of these inst ances, there is a need to assess the pote nt ial impact of exte rnal factors on your organization, from both an operational and a mar#et perspective. he ran#ing of each of these factors within the six categories may vary because different organizations have different priorities. &or example, organizations that sell to consumers tend to be more affected by 1
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