ORGANIZATION AND MANAGEMENT SHS SPECIALIZED SUBJECT IN ABM STRAND

1. PESTLE analysis

2. Aims
• Prepare a PESTLE analysis for a given
situation and use it to analyse the impact
of the external environment on a firm.
• Evaluate the impact on a firm’s objectives
and strategy of a change in any of the
PEST/PESTLE factors.

3. What is it?
• It’s a way of working out what is going on
‘out there’ so you can then respond to it.

4. POLITICAL
• Environmental protection/legislation
• Consumer protection
• Government’s attitude
• Competition regulation
• Advertising standards

5. Economic
• Economic growth
• Taxation international trade
• Exchange Rate
• Employment law
• Health and Safety law
• Inflation
• Consumer confidence
• Minimum wage

6. Social
• Income distribution
• Demographics
• Labour & Social mobility
• Lifestyle changes
• Attitudes to work and leisure
• Education
• Fashion and Fads
• Health & Welfare
• Living conditions

7. Technological
• Changes in physical sciences
• Internet
• Energy use and costs
• Rates of technological obsolescence
• New discoveries
• Govt and Industry focus on tech
• Govt spending on research

8. Legal
• Employment law
• Health and Safety
• Taxation both corporate and consumer
• Other regulations
• International trade barriers
• Strength of the rule of law

9. Environmental
• How people’s perception and reaction to
environmental issues can affect a
business.

10. Exam tip
• Remember it is not enough to identify the
factor, you must say why it is where it is.

11. Task
• In pairs you will be given a company to
prepare a PESTLE analysis for.
• Both pairings and the task will be decided
randomly!

12. Task
• The first job is to research some issues
and background about the company.
• Where am I going to get this info?
• This will require a bit of thought and
subtlety on your part. You must go
beyond the obvious!

13. Task
• Brainstorm the PESTLE with your partner.
• Work out how you are going to present
this information.
• Remember it is not enough to identify the
factor, you must say why it is where it is.

14. Task
• Write a short piece explaining how the firm
should exploit/avoid some of the issues
you have identified.