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.