Writing a PESTLE analysis - a diagnostic tool, STEP, PEST analysis, SLEPT analysis, STEPE, ETPS, SWOT, Marketing, environment
scan
     
 This page last updated
3 June 2009
   
PEST & PESTLE Analysis
The environment scan
     
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Writing a PESTLE Analysis - Tools and  
Template
ETPS - PESTEL - PESTLEE - PESTLIED -
SLEPT - STEEPLE - STEP - STEPE - PEST-G
The Environment Scan - Environmental
Organizational Scanning
PESTLE Analysis micro site - History - Introduction - Templates -
HR example - Schools & Education - PEST-G
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Welcome to our new micro site on the PEST or PESTLE analysis.
Our popular page has now been improved and is split into more      
easily digested chunks. Lets us know your comments and
feedback. Use the menu above to navigate through this PESTLE Have you seen our
analysis micro site. free culture survey
Visit the article home page for all of our articles and content   For more great  
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The PEST or PESTLE Analysis articles micro site
Originally designed as a business environmental scan, the PEST  
or PESTLE analysis is an analysis of the external macro
environment (big picture) in which a business operates. These  
are often factors which are beyond the control or influence of a
business, however are important to be aware of when doing
product development, business or strategy planning.  
   
This page has been developed to help and support anyone with
activities or projects which require use of the PESTLE analysis
tool to undertake an environmental scan of an organizations  
operating environment.
 
History of PEST and PESTLE  
So where did the term PEST or PESTLE derive? What were the
origins?  
The term PESTLE has been used regularly in the last 10+ years
and its true history is difficult to establish.  
From our research, the earliest know reference to tools and  
techniques for ‘Scanning the Business Environment’ appears to
be by Francis J. Aguilar (1967) who discusses ‘ETPS’ - a
mnemonic for the four sectors of his taxonomy of the
environment: Economic, Technical, Political, and Social. Change
management
Shortly after its publication, Arnold Brown for the Institute of Life process
Insurance (in the US) reorganized it as ‘STEP’ (Strategic Trend
Research-based,
Evaluation Process) as a way to organise the results of his
environmental scanning. holistic model for
managing the
Thereafter, this ‘macro external environment analysis’, or people side of
‘environmental scanning for change’, was modified yet again to change
become a so-called STEPE analysis (the Social, Technical, www.change-manageme
Economic, Political, and Ecological taxonomies).
GaBi - Free
In the 1980s, several other authors including Fahey, Narayanan, demo download
Morrison, Renfro, Boucher, Mecca and Porter included variations Powerful tools and
of the taxonomy classifications in a variety of orders: PEST,
databases for
PESTLE, STEEPLE etc. Why the slightly negative connotations of
Writing a PESTLE analysis - a diagnostic tool, STEP, PEST analysis, SLEPT analysis, STEPE, ETPS, SWOT, Marketing, environment scan

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Developed By former
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and now used by former
Business Link Advisers
with their private clients.
PEST have proven to be more popular than STEP is not known. product and
There is no implied order or priority in any of the formats. process
sustainability
Some purists claim that STEP or PEST still contain headings www.gabi-software.com
which are appropriate for all situations, other claim that the
additional breakdown of some factors to help individuals and
teams undertaking an environmental scan. A Personal
Strategic Plan
Quite who and when added what elements to the mnemonic is a Think, plan, and
mystery, but what we do know is that the actual order and words act strategically at
contained are common to certain parts of the world and streams
of academic study. The term PESTLE is particularly popular on
the individual level
HR and introductory marketing courses in the UK. Others favour - Sample
www.cmoe.com/strategic
PEST, STEP or STEEPLE.
top

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logos below: Introduction to The PESTLE Analysis tool performance mgmt
PESTLE analysis is a useful tool for understanding the “big software ratings.
picture” of the environment in which you are operating, and the Evaluate now!
opportunities and threats that lie within it. By understanding the HR.TechnologyEvaluation
environment in which you operate (external to your company or
department), you can take advantage of the opportunities and
minimize the threats.  
Specifically the PEST or PESTLE analysis is a useful tool
for understanding risks associated with market growth or
 
decline, and as such the position, potential and direction
for a business or organization.

For the purposes of this page we will focus on the PESTLE

variation of the acronym. OBDII Scantool &
The PESTLE Analysis is often used as a generic 'orientation' Labscope
tool, finding out where an organization or product is in the The premier CJ4
context of what is happening out side that will at some point scantool is a
effect what is happening inside an organization. multisystem
diagnostic platform
A PESTLE analysis is a business measurement tool, www.injectronic.com
looking at factors external to the organization. It is often
used within a strategic SWOT analysis (Strengths, Weaknesses,
Opportunities and Threats analysis).
Business Plan
Writing
Write a
PESTLE is an acronym for Comprehensive
Business Plan
Political, Economic, Social, Technological, Legal Download it Now
Key Dates
1950
and Environmental factors, & Get the Job
1960 which are used to assess the market for a business or Done!
1964 organizational unit strategic plan BizTree.com
1967 Qualys
1970 Vulnerability
1980
The PESTLE analysis headings are a framework for Scan
1990
1995 reviewing a situation, and can also be used to review a Accurate, fast
2000 strategy or position, direction of a company, a marketing detection of
2001 proposition, or idea. There are many variants on this model network
2002 including PEST analysis and STEEPLE analysis.
2003
vulnerabilities.
2004 Free Network
Completing a PESTLE analysis can be a simple or complex
2005 Scan!
2006 process. It all depends how thorough you need to be.  It is
2007 a good subject for workshop sessions, as undertaking this
2008 activity with only one perspective (i.e. only one persons Environmental
2009 view) can be time consuming and miss critical factors. Performance
Get quantitative
 
Use PESTLE analysis for business and strategic planning, insight with our
  marketing planning, business and product development and Life Cycle Tools.
SWOT analysis research reports. Free downloads!
  www.pre.nl
  The PESTLE template below includes sample questions or
prompts, whose answers are can be inserted into the

http://rapidbi.com/pestle/[30/11/2009 12:54:37]
Writing a PESTLE analysis - a diagnostic tool, STEP, PEST analysis, SLEPT analysis, STEPE, ETPS, SWOT, Marketing, environment scan

 
Try our business SWOT relevant section of the table.
 
tool for free NOW
U The questions are examples of discussion points, and
 
should be altered depending on the subject of the analysis,
  and how you want to use it.  
  Make up your own PESTLE questions and prompts to suit  
Try our business SWOT
the issue being analyzed and the situation (i.e. the people Visit our NEW articles micro site
tool for free NOW
doing the work and the expectations of them). Other great tools:
  business   SWOT, PESTLE & SMART
  top   It is important to clearly identify the subject of a PESTLE
analysis (that is a clear goal or output requirement), Have you seen our
      because an analysis of this type is multi faceted in relation
free videos on coaching?

to a particular business unit or proposition - if you dilute or

the focus you will produce an unclear picture - so be clear free culture survey
about the situation and perspective that you use PESTLE to
analyze.

A market is defined by what is addressing it, be it a

product, company, organization, brand, business unit,
proposition, idea, etc, so be clear about how you define the
market being analyzed, particularly if you use PESTLE
analysis in workshops, team exercises or as a delegated
task. The PESTLE subject should be a clear definition of
the market being addressed, which might be from any of
the following standpoints:

A company looking at its market

A product looking at its market
A brand in relation to its market
A local business unit or function in a business
A strategic option, such as entering a new market or
launching a new product
A potential acquisition
A potential partnership
An investment opportunity

Be sure to describe the subject for the PESTLE analysis

clearly so that people contributing to the analysis, and
those seeing the finished PESTLE analysis, properly
understand the purpose of the PESTLE assessment and
implications.
top

On to SWOT analysis
To take the PESTLE analysis forward you can integrate the
results into your SWOT.
The outputs from the BIR/ SWOT will provide you with your
internal strengths and weaknesses.

Have a look at the HIGH impacts from the PESTLE.  Some will be
positive in nature, others will be negative. List these on your
SWOT analysis under OPPORTUNITIES and THREATS.

The PESTLE model is a useful environmental scan as part of a

diagnostic process. The PESTLE analysis tool can be used in
association with the Business Improvement Review (BIR) - a
highly structured and holistic SWOT tool.  The PESTLE models
can help to identify the context in which a business operates and
provide a context for change.  A PESTLE analysis can provide a
valuable agenda upon which to use a Business Improvement
Review (BIR) to help identify the strengths and weaknesses
(SWOT) of an organization, as apart of an organizational change
process. Click here for more information. Need to write SMART
objectives? Need to use Management Models

Have you found this page of value? Need more details/ ideas?
Your feedback is welcomed.

http://rapidbi.com/pestle/[30/11/2009 12:54:37]
Writing a PESTLE analysis - a diagnostic tool, STEP, PEST analysis, SLEPT analysis, STEPE, ETPS, SWOT, Marketing, environment scan

Based upon information from many sources. No copyright over

the model or acronyms are assumed. This page is provided for
educational purposes only. RapidBI Ltd cannot accept any
responsibility for the actions taken using this or any of the tools
provided on this site. Please note this page is updated on a
regular basis.  The more feedback we get the more we will
develop this and similar pages for people studying CIPD and
other HR and management programmes. CTP, CPP etc

top

PEST-G or PEST-E

What is PEST-G or PEST-E?

There has been some changes to the way PEST is being used in
2009, with the addition of G for Green or E for Environment.
Within the PESTLE version of course this is already catered for.

It has taken some time, but now those faithful to PEST rather
than PESTLE are starting to change and add a new variant.

top

PESTLE Analysis micro site - History - Introduction - Templates -

HR example - Schools & Education

© RapidBI 2000-2009 all rights reserved © Mike Morrison 2009

The BIR, the diamonds and the term RapidBI is © & TM Mike Morrison. All other TM & © acknowledged

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