PESTLE Analysis

As Newton and Bristoll (2013:6) said, all organization need to identify some external factors that could impact their operations. Although they cannot control the factors, but they still need to know so they understand where they stand at. One of a popular method to identify external factor is PESTLE analysis, which help us to see and consider: Politic, Economic, Social, Technological, Legal and Environmental factors. The main purpose of PESTLE analysis is to identifying issues that fit with two key criteria:

* They are outside the control of your company.

* They will have some level of impact on it.

Advantages of PESTLE Analysis:

* Provides a simple and easy-to-use framework for the analysis process.

* Involves expertise and cross-functional skills in the analysis process.

* Helps to reduce the impact and effects of potential threats to the companies.

* Help and encourage the development of strategic thinking within the company.

* Provide a way of working that enables the company to identify and exploit new opportunities.

* Enables you to evaluate the implications of the process of entering new markets on a national and international scale.

As Newton and Bristoll (2013:6) said, one of a popular method to identify external factor is PESTLE analysis, which help us to see and consider: Politic, Economic, Social, Technological, Legal and Environmental factors.

PESTLE Analysis

Source: Free Management E-Books (2013:6)

The process or step when using the PESTLE analysis is relatively simple one:

* Brainstorms and make a list of key issues that are outside the company’s control

* Broadly identify all the implications of each issue

* Sort things that are relatively important to the company (ex: critical, extensive, important, significant, moderate or insignificant)

* Estimating possible problems that will occur. (ex: certainty, extremely likely, likely, potential, remote possibility, or will not transpire)

* Briefly consider the implications if the issue did occur.