TRANSFORMING CAPABILITY SUPPORT MATERIALS LEADING VISION CREATION PESTLE Introduction PESTLE is an analytical framework which can be used to evaluate the potential future conditions for the business, in respect of political, economic, social, technological, legal and environmental forces. PESTLE is similar to a STEEP analysis, which evaluates Political, Economic, Environment, Social and Technological factors. Political forces: Government policies, political stability, European Union integration and political pressure group activity Economic forces: Economic growth/decline, stability, interest rates, inflation, levels of taxation and exchange rates. Social forces: Changes in lifestyle; changes in fashions; changes in the structure of the population (demographic change), eg. age trends, birth and death rates, gender structure, ethnic structure, and mobility trends - where people are living/moving to new areas. Technological forces: Pace of change in process technologies (how the products are made) or product technologies (technology in the product itself); cost of technology (reducing/increasing). Legal forces:Legislation affecting how a company operates, its cost and the demand for its products, for example, discrimination, consumer, employment and health and safety legislation Environment issues: Supply/ cost of raw materials, energy costs, environmental protection controls It is very useful to use additional sources of information for undertaking the PESTLE analysis, for example market forecasts or government reports. Such reports exist for a wide range of industries and will help prevent organisations from having to do this research themselves. Consider each area to identify what changes are likely to have an impact on the organisation, be as specific as possible. Specific issues as they relate to the company and business environment can then be used to draw conclusions about the potential impact on the organisation. Further Information for content of PESTLE analysis: Internal  Management team  Employees External  Customers  Suppliers  External consultants / specialists  Seminars and conferences Research and publications     Instructions The template on the next page may be used to capture the results of the following steps: Key Steps: Step 1: Identify which of the factors above may impact on the organisation, its customers or its suppliers in the future Step 2: For each of the key trends identify what specific issues it raises for the organisation? Be specific Step 3: How might these issues impact on the organisation? Step 4: What actions can you take to take account of these key trends (either to mitigate risks to the organisation, or take advantage of opportunities)

TRANSFORMING CAPABILITY SUPPORT MATERIALS LEADING VISION CREATION PESTLE Key TrendsImpact Political Economic Social Technological Legal Environmental Actions