Difference between revisions of "PESTLE Analysis"
From Learning and training wiki
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{{Term|PESTLE Analysis| | {{Term|PESTLE Analysis| | ||
| − | + | PEST (the short version), is a marketing concept used by companies to track the markets they are operating in or those new markets they are intending to enter. The acronym incorporates 6 aspects of the analysed market: '''P'''olitical, '''E'''conomic, '''S'''ocial, '''T'''echnological, '''L'''egal and '''E'''nvironmental. It is a more comprehensive version of [[SWOT Analysis|SWOT analysis]] as it tackles every aspect of an existing market.}} | |
| − | {{Tool|The elements of PESTLE Analysis| | + | {{Tool|The elements of a PESTLE Analysis| |
'''1. Political''': analyses the extent to which the government leverages the economy through tax policies, fiscal policies, trade tariffs and so on having thus an impact on the company’s business. | '''1. Political''': analyses the extent to which the government leverages the economy through tax policies, fiscal policies, trade tariffs and so on having thus an impact on the company’s business. | ||
| − | '''2. Economic''': analyses the overall performance of the economy which determines the way | + | '''2. Economic''': analyses the overall performance of the economy, which determines the way that companies will prise their products and services. The economic factors are: inflation rate, interest rate, foreign exchange rate, economic growth patterns, foreign direct investment, etc. |
| − | '''3. Social''': analyses | + | '''3. Social''': analyses social factors like culture, population analytics, demographics and so on, which can determine the buying trends of the companies’ products. |
'''4. Technological''': considers the existent technological innovation and its impact on the market. | '''4. Technological''': considers the existent technological innovation and its impact on the market. | ||
| − | '''5. Legal''': examines the legal aspect of a market from two different | + | '''5. Legal''': examines the legal aspect of a market from two different perspective: one related to the laws within the business environment of a specific country and the other related to the policies of the companies. According to these two perspectives and their matching degree, companies choose certain strategies over others. |
| − | '''6. Environment''': refers to | + | '''6. Environment''': refers to environmental factors, namely: geographical location, climate and weather. The main businesses exposed to these factors are agri-businesses, farming, etc<ref>PESTLE Analysis http://en.wikipedia.org/wiki/PEST_analysis</ref><ref>PEST Analysis Healthcare UK http://www.myquestions.co.uk/archives/pauls-pestle-analysis-uk-healthcare-march-2012/</ref> |
| − | '''See also''' [[SWOT analysis|SWOT Analysis]]}} | + | '''See also:''' [[SWOT analysis|SWOT Analysis]]}} |
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|[http://bpmgeek.com/blog/what-pestle-analysis What is a PESTLE Analysis and how to use it?] | |[http://bpmgeek.com/blog/what-pestle-analysis What is a PESTLE Analysis and how to use it?] | ||
| − | |This brief article explains what a PESTLE Analysis and applies it to one concrete example. | + | |This brief article explains what a PESTLE Analysis is and applies it to one concrete example. |
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|[http://www.jiscinfonet.ac.uk/tools/pestle-swot/ PESTLE & SWOT analyses] | |[http://www.jiscinfonet.ac.uk/tools/pestle-swot/ PESTLE & SWOT analyses] | ||
Revision as of 16:09, 25 December 2014
 PESTLE Analysis |
| PEST (the short version), is a marketing concept used by companies to track the markets they are operating in or those new markets they are intending to enter. The acronym incorporates 6 aspects of the analysed market: Political, Economic, Social, Technological, Legal and Environmental. It is a more comprehensive version of SWOT analysis as it tackles every aspect of an existing market. |
 The elements of a PESTLE Analysis |
|
1. Political: analyses the extent to which the government leverages the economy through tax policies, fiscal policies, trade tariffs and so on having thus an impact on the company’s business. 2. Economic: analyses the overall performance of the economy, which determines the way that companies will prise their products and services. The economic factors are: inflation rate, interest rate, foreign exchange rate, economic growth patterns, foreign direct investment, etc. 3. Social: analyses social factors like culture, population analytics, demographics and so on, which can determine the buying trends of the companies’ products. 4. Technological: considers the existent technological innovation and its impact on the market. 5. Legal: examines the legal aspect of a market from two different perspective: one related to the laws within the business environment of a specific country and the other related to the policies of the companies. According to these two perspectives and their matching degree, companies choose certain strategies over others. 6. Environment: refers to environmental factors, namely: geographical location, climate and weather. The main businesses exposed to these factors are agri-businesses, farming, etc[1][2]
|
 Web Resources |
| Link | Content |
|---|---|
| What is a PESTLE Analysis and how to use it? | This brief article explains what a PESTLE Analysis is and applies it to one concrete example. |
| PESTLE & SWOT analyses | This article compares both types of analyses, and explains its strengths and weaknesses. |
| Marketing Theories: PESTLE Analysis | This entry goes more in detail as to what the PESTLE factors are. |
| Reason to Use SWOT & PESTLE Analysis | Here is why you must use either of these analyses to improve your marketing and outcomes! |
| PESTLE Analysis Tool | Here is a very useful PESTLE template to be able to conduct the analysis yourself! |
References
- ↑ PESTLE Analysis http://en.wikipedia.org/wiki/PEST_analysis
- ↑ PEST Analysis Healthcare UK http://www.myquestions.co.uk/archives/pauls-pestle-analysis-uk-healthcare-march-2012/