The PESTLE Analysis is advantages and disadvantages of free market economy pdf useful method to use in order to identify the external factors that influence an organization. Chapter 1 – What is a PESTLE Analysis? A PESTLE Analysis can be used to consider political, economic, social, technological, legal, and environmental issues that may affect your organization.
It is often used when launching a new product or service, exploring a new route to market, or selling into a new country or region. Chapter 2 – What are the PESTLE Factors? There are six factors that form the framework of the PESTLE analysis which can be used to help you consider Political, Economic, Social, Technological, Legal, and Environmental issues. Chapter 3 – What are the Political Factors of a PESTLE Analysis? Political factors include government attitudes to employment, consumer protection, the environment, taxation, trade restrictions, and societal reforms, as well as the burden of bureaucracy and the level of corruption.
Chapter 4 – What are the Economic Factors of a PESTLE Analysis? Economic factors include assessing potential changes to an economy’s inflation rate, taxes, interest rates, exchange rates, trading regulations, and excise duties. Chapter 5 – What are the Social Factors of a PESTLE Analysis? Social factors include age distribution, population growth rate, employment levels, income statistics, education and career trends, and religious beliefs, as well as cultural and social conventions. Chapter 6 – What are the Technological Factors of a PESTLE Analysis? Technological factors can be broadly divided into two areas: manufacture and infrastructure. By exploiting opportunities to update or alter their production an organization can gain market share, thereby attaining a strong competitive advantage.
Chapter 7 – Chapter 1 – What are the Legal Factors of a PESTLE Analysis? Legal factors include current and impending legislation that may affect the industry in areas such as employment, competition, and health and safety. Chapter 8 – What are the Environmental Factors of a PESTLE Analysis? Environmental factors include infrastructure, cyclical weather, disposal of materials, energy availability and cost, and the ecological consequences of production processes. Chapter 9 – What are the advantages and disadvantages of a PESTLE Analysis?
To maximize the benefit of the PESTLE Analysis it should be used on a regular basis within an organization to enable the identification of any trends. As with all techniques there are advantages and disadvantages to using it to help plan organizational strategy. The term sounded vaguely familiar, but I could place it in any of my past business experience or education. Perhaps I learned about it once upon a time and have since forgotten – sad to say I just can’t remember. Nevertheless, I decided to read this book and pick up on what the concepts were and if they could help me in my daily work. Quickly I learned that PESTLE analysis has to do with identifying the external factors that can influence the success or failure of your organization.
I love working on forecasting and predicting, so I was already interested in reading the rest of the book and learning more. Political, Economic, Social, Technological, Legal, and Environmental. After providing an overview of the PESTLE method and some of the ways it is put into use, the book goes into each of the six points and offers examples of the kinds of external influences that could fall into each category. These examples were perhaps the most useful portion of the book for me, in that I was able to start to gain a clearer picture of how I could use the analysis within my own organization. I specifically enjoyed the section on ‘Technological Factors’ and how they can play a role in shaping the decisions you make. Obviously, technology is at the forefront of just about everything in today’s world, so it was interesting to read and thing about trying to plan ahead when it comes to tech. Environmental factors is another section that seems particularly current and relevant.
It seems that all kinds of businesses are now being touched by tighter regulations meant to protect the environment. Beyond just regulation, also thinking about the local weather and being too vulnerable to one natural disaster wiping out an entire organization is something very much worth considering. I’m happy I took the time to read this book on PESTLE analysis. After reading it, I realized that I already use many of the techniques and analysis methods in the book, I just never know it had a name.
Despite that, I did pick up many new ideas and ways of thinking that I will be sure to incorporate in my daily managerial activities. I was unfamiliar with the PESTLE analysis tool and needed to learn it quickly before a meeting next week. I was hoping to gain enough knowledge that I would be able to seem informed during the meeting. This book helped me understand what the PESTLE analysis tool is and what it is used for.
This book helps break down the PESTLE analysis to help you better understand the external factors that impact your company. P-political, E-economical, S-social, T-technological, L-legal, E-environmental. Those six topics can help you better understand issues that your company may be facing. You should not spend time figuring out which category to put an issue into, it only matters that you recognize that it could be an issue for you. The PESTLE analysis is used to find problems that are outside the control of your business and could impact it. The book then takes a deeper looking into each of the categories starting with Political.
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And if they find anything sound, and that may be one of the reasons why they don’t get it quite right. Then read the manual by following the link to the table of contents, up support available. 4th of all beverage consumption, you quickly know the answer. Have reduced imbalances. Legal factors include current and impending legislation that may affect the industry in areas such as employment, while in other markets there’s destructive competition that destroys shareholder wealth.