Who invented pestle analysis

People professionals and senior managers can use the results to guide strategic decision-making. For a transcript of this video, please scroll to the end of the page. Political : Tax policy; environmental regulations; trade restrictions and reform; tariffs; political stability. Sociological: Cultural norms and expectations; health consciousness; population growth rates; age distribution; career attitudes; health and safety.

Technological: New technologies are continually emerging for example, in the fields of robotics and artificial intelligence , and the rate of change itself is increasing. Environmental: Global warming and the increased need to switch to sustainable resources; ethical sourcing both locally and nationally , including supply chain intelligence.

Pandemics and other emergencies. By analysing those factors, organisations can gain insight into the external influences which may impact their strategy and business decisions. It allows HR and senior managers to assess any risks specific to their industry and organisation, and use that knowledge to inform their decisions.

PESTLE is a popular topic in HR, learning and development, organisation development and marketing courses in the UK as it underpins the importance of considering the impact of external forces on a range of plans for change. It can also highlight the potential for additional costs, and prompt further research to be built into future plans. This means following these steps:. Organisations that regularly and systematically conduct such analyses often spot trends before others, thus providing competitive advantage.

It helps an organisation establish the external factors that could impact decisions made inside the organisation. An organisation on its own cannot affect these factors — nor can these factors directly affect the profitability of an organisation. Conducting a strategic analysis means scanning the external environment to detect and understand broad, long-term trends. These can encompass:. It provides the senior management team with contextual information about the direction in which the business is going, brand positioning, growth targets, and any risks such as another pandemic which might bring a decline in productivity.

It can also help determine the validity of existing products and services and define new product development. Workforce planning is a business process that aligns business and people strategies. A PESTLE analysis can help to identify disruptive changes to business models that may have a profound impact on the future employment landscape.

Organisations are facing huge changes in their workforce from increased skills gaps, the creation of job roles that did not exist 10 years ago, and job reductions or displacement. Need to use Management Models. Have you found this page of value? Your feedback is welcomed. Based upon information from many sources. No copyright over the model or acronyms are assumed. This page is provided for educational purposes only. RapidBI Ltd cannot accept any responsibility for the actions taken using this or any of the tools provided on this site.

Please note this page is updated on a regular basis. The more feedback we get the more we will develop this and similar pages for people studying CIPD and other HR and management programmes. Mike is a consultant and change agent specialising in developing skills in senior people to increase organizational performance. Way cool! Some extremely valid points! I appreciate you penning this article and also the rest of the site is also very good.

Hey there! Someone in my Myspace group shared this website with us so I came to look it over. Wonderful blog and wonderful design.

This information has really helped me on my Masters Degree Strategic Planing course. Thank you so much. What makes a country attractive?

What does social mean in pestle? What are the political factors in pestle? What are the 5 external environmental factors that affect marketing? These are the following:. Demographic Factors. How many cells are in a SWOT matrix? What is country attractiveness index? What is the simplest way to enter a foreign market? What is attractiveness index? What comes first pestle or SWOT?

Why is PEST analysis used? PEST Analysis is useful for four main reasons:. It helps you to spot business or personal opportunities, and it gives you advanced warning of significant threats. Are SWOT analysis still used? What are the 4 parts of a SWOT analysis? The structure of a PESTLE allows you to easily view all of the key external factors influencing your business in one diagram. A PESTLE can be one of the most insightful and detailed frameworks, helping you future proof and grow your business by being fully focused to the external environment.

You need a mix of employees with different skills and market knowledge to ensure you capture all aspects of the pillar. It is best practise to review your PESTLE on an annual basis, this helps provide you with the ever changing landscape you operate in and keeps all employees looking outward when making their decisions.