PESTEL Flashcards
Define Pestle
When conducting a marketing audit, it is important to analyse external factors that may impact an organisation’s strategy development, supply and demand levels or costings.
A strategic tool for understanding the market environment, market growth or decline and potential business directions is the use of a PESTLE analysis (Koumparoulis, 2013).
A PESTLE analysis is the identification of Political, Economic, Social, Technological, Legal and Environmental factors influential within the business environment (Grant & Jordan, 2015)
PESTLE - little relevance - Grant and Thornton 2015
although the thorough, systematic and continual analysis of external factors may seem desirable, it incurs high costs and can result in information overload. It has been suggested that the key to an effective environmental analysis is to identify the vital from the merely important factors (Grant & Jordan, 2015).
PESTLE - little relevance - Burt & Wright 2006
Burt & Wright (2006) highlights the PESTLE analysis having little relevance to a marketing audit due to the dynamic marketplace. They suggest its usefulness is limited in its analysis of the organisational environment as it fails to acknowledge and understand the interrelationships among variables or produce a precise understanding of the external drivers of change within the marketplace. The framework, by thought of Burt & Wright (2006) is to general in its approach.
an external environment analysis through PESTLE is suggested to be of little relevance in today’s environment and is of little relevance to the marketing audit as it fails to acknowledge reasons for change in the environment
political and legal forces
Brexit consumer legislation codes of practice political incentives (healthy eating) sugar tax
economic forces
economic growth (unemployment vs employment) manufacturing output exchange rates taxation inflation recession
social forces
demographic change multiculturalism changing patterns of social behaviour rise of consumer movement corporate social responsibility and marketing ethics population growth rate education religion
technological forces
body scanners internet smart phones digitally controlled homes new technology that competitors could use to get a competitive advantage?
environmental forces
climate change pollution use of recyclable and non recyclable packaging animal testing sustainability
what authors discussed the relevance of PESTLE
Grant and Thornton 2015
Burt and Wright 2006 x 2
what authors defined pestle
Koumparoulis 2013
Grant and Thornton 2015
