5. PESTLE vs. SWOT
In contrast to a SWOT, PESTLE encourages you to think about the wider environment and what might be happening now and in the future which will either benefit or be of disadvantage to the organization, individual etc. You can use results from PESTLE for SWOT – OT (opportunities and threats) part but PESTLE can be used also separately. OTs come always from PESTLE and other analyses
– a kind of radar which picks up trends and developments in the external environment which can be used to inform longer term planning and strategy making
You cannot do SWOT without any macro and microenviroment analyses done before!

6. Issues of concern
The main problem with these external PESTLE factors is that they are continuously changing
Therefore PESTLE analysis should include a thorough analysis of what is affecting the organization or a project Now, and what is likely to affect it in the Future – not in general but focused!
The result of a PESTLE analysis is usually a list of positive and negative factors that are likely to affect a project
However, by themselves, theses factors they mean very little
It is important to bear in mind, that PESTLE analysis requires careful Application of results
All factors must be carefully evaluated and their impact mu be clearly expressed – see example in other file
“Importance”
- Increasing >
- Unchanged =
- Decreasing <

7. HELPS FREDICT analysis (common to PESTLE) G. Clarke
FACTORS
importance
1-10
probability
impact
- 5+5
sum
historical
economic
language
political
sociál
financial
rules of international trade
environmental
demographic
infrastructural
cultural
technological

8. The microenvironment consists of the actors in the firm’s immediate
environment that affect its capabilities to operate effectively in its chosen markets.

9. Model of 5 competitive forces (Michael Porter)
Threat of and opportunity from:
(intense) segment rivalry
new entrants
substitute products
4. buyers’ bargaining power
5. suppliers’ bargaining power

10. Understanding the competitors
Image and Positioning
Objectives and Commitment
Size, Growth
& Profitability
Current and Past Strategies
Strengths and Weaknesses
Competitor Actions
Organization and Culture
Exit Barriers
Cost Structure
Figure 3.3

11. Rivalry Between Established Competitors
The extent to which industry profitability is depressed by aggressive price competition depends upon:
Concentration (number and size distribution of firms)
Diversity of competitors (differences in goals, cost structure, etc.)
Product differentiation
Excess capacity and exit barriers
Cost conditions
Extent of scale economies
Ratio of fixed to variable costs

12. Source: http://pics1.imagezone.org/key/%20Strategic%20Group%20Mapping

15. Example of results of macro, micro and company analyses combination
Source: Schmid and Grosche, 2008, Managing the international value chain in the automotive industry