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 firms objectives and strategy of a change in any of the PEST/PESTLE factors.

What is it?
Its a way of working out what is going on out there so you can then respond to it.

POLITICAL
Environmental protection/legislation Consumer protection Governments attitude Competition regulation Advertising standards

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

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

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

Environmental
How peoples 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.

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.