PESTLE analysis

[Kevrodr]

Good Day business forum members

I will be writing my final business exam next week in South Africa. On-line sources state that that these exam is inequivalent to the UK AS level exams.

One of our tasks is usually to do a whole or part of a P2E2STLE analysis on a business or proposed business venture to analyse the macro business environment.

This required us to consider the following factors in the macro environment:

[*]Pysical
[*]Political
[*]Economic
[*]Ethical
[*]Social
[*]Technological
[*]Legal
[*]Enviornmental(natural)

The definitions of the factors and examples of possible influence given in my text books are often ambiguous and confusing. Particularly between the economic and legal factors, and environmental and physical factors.

If one of you has knowledge on this topic can you please assist me by providing a definition of what the factors are and what aspect or challenges should be found in the factors, I would greatly appreciate it.

Thank you in advance!!

 

[shanew]

Wish you all the best mate!!!

 

[simonr]

Hi Kevrodr - I'm not going to be much use here, I'm afraid, as this is the first time I've been presented with the PESTLE concept... but it seems like a really good structure to me!

The CIPD has a useful looking page though: http://www.cipd.co.uk/hr-resources/factsheets/pestle-analysis.aspx

Simon

 

[benjihubbs]

This is what we are studying at the moment in AS Business.. PESTLE analysis looks at how all of those factors could affect a business.

For example, a change in licencing law may mean that a pub cannot open at its usual time and so will lose money as a result.

Technological advances (i.e. Email) have meant that less letters are being sent, so Royal Mail is making less and less money.

The social activities of people may change, and so companies may lose out as a result.

Hope this helps