Technique 2.77 PESTLE
{product-noshow 9|name|cart|picture|link|border|menuid:206|pricedis3|pricetax1}
Introduction
Using the PESTLE analysis to identify potential sense of urgency(ies).This involves doing a scan of your environment under the headings of political, economic, sociological, technological, legal & environment (see table below)
| Definition |
Basis questions |
|
|
| P = political |
What is the political situation of the country and how can it affect your industry? | global/regional/national/local factors; national stability/security, type of government, government policies, personalities in positions of power, separation of power (politicians & judiciary) | |
| E = economic |
What are the relevant economic factors? | fiscal (tax) and monetary (interest-rate) policies; macro and micro indicators (economic growth, exchange rates, inflation rate, disposable income, home ownership, living standards, etc) wealth/income distribution, cost of inputs (materials, wage rates, etc), etc social classes, living conditions and lifestyle. |
|
| S = sociological | How importantly does culture impact in your industry and what are its determinants? |
|
|
| T = technological | What technological innovations are likely to occur & impact your industry? | research and development, automation levels, technology incentives, rate of technical change (especially disruptive one, eg digital & internet, etc), barriers to entry, creativity, innovation, impacts on efficiency & production (logistics, manufacturing, etc), etc | |
| L = legal |
What are the current laws (rules & regulations, etc) that impact your industry and are there any proposed changes in these laws for your industry? |
understanding legal framework (international/regional/national/local), eg rules & regulations; laws (discrimination, consumer, anti-trust, industrial relations, employment, health and safety, etc); independence of the judiciary | |
| E = environmental | What are the environmental concerns for your industry? | global to local issues, sustainability (renewables, etc), recycling waste, climate change (global warming, etc), pollution, resource degradation & depletion (flora, fauna, land, minerals, water, air, etc), consumerism, etc |
NB The social, economic, political, technological, environmental, legal drivers of change are very powerful forces. Like swimming in the ocean, it is futile to swim against the strong currents as they will soon overwhelm and exhaust you. There are 2 options: you can float entirely at the mercy of currents and keep your head just above the water, ie go with the flow, or manoeuvre yourself into a favourable position that will allow you to swim back to shore with the help of the waves, ie find ways to handle the situation.
(source: Alexander Osterwalder et al, 2010)
