PESTLE analysis

PESTLE will set you the task of examining the sector and environment that the organisation is operating in and how this will be affecting the organisation and its competitors. PESTLE requires you to look at six different fields when doing your research giving you a broad view of what is going on in the sector as a whole.

Political

How the government may influence the sector/organisation.

For example, due to Brexit the organisations trading and labour practices are uncertain and is therefore holding back on expansion in the UK.

Economical

Performance of the economy which may impact in the short, medium and long term

For example, the weakening of the pound has made exporting goods cheaper, therefore the organisation has been able to exploit a growth in demand.

Social

Influences of population, demographic, culture and trends

For example, how is the sector being effected by the UK’s aging population?

Technological

Innovations in technology that could affect the sector/organisation

For example, advances in artificial computer customer service is changing how costumers act in store, as well as altering the role of staff members.

Legal

Legislation that affects the operations of a sector/organisation

For example, what new laws and regulations have come in? Dose the introduction of a Sugar tax coming into effect in 2018 mean that the organisation need make changes to its production.

Environmental

Impact of the surrounding climate, weather and geographical location.

For example, with climate change becoming a more pressing matter, what is the organisation doing about this? Are regulations from the Paris Agreement going to mean the organisation must act differently?