1. PESTLE analysis

2. Aims Prepare a PESTLE analysis for a given situation and use it to analyse the impact of the external environment on a firm. Evaluate the impact on a firm’s objectives and strategy of a change in any of the PEST/PESTLE factors.

3. What is it? It’s a way of working out what is going on ‘out there’ so you can then respond to it.

4. POLITICAL Environmental protection/legislation Consumer protection Government’s attitude Competition regulation Advertising standards

5. Economic Economic growth Taxation international trade Exchange Rate Employment law Health and Safety law Inflation Consumer confidence Minimum wage

6. Social Income distribution Demographics Labour & Social mobility Lifestyle changes Attitudes to work and leisure Education Fashion and Fads Health & Welfare Living conditions

7. Technological Changes in physical sciences Internet Energy use and costs Rates of technological obsolescence New discoveries Govt and Industry focus on tech Govt spending on research

8. Legal Employment law Health and Safety Taxation both corporate and consumer Other regulations International trade barriers Strength of the rule of law

9. Environmental How people’s perception and reaction to environmental issues can affect a business.

10. Exam tip Remember it is not enough to identify the factor, you must say why it is where it is.

11. Task In pairs you will be given a company to prepare a PESTLE analysis for. Both pairings and the task will be decided randomly!

12. Task The first job is to research some issues and background about the company. Where am I going to get this info? This will require a bit of thought and subtlety on your part. You must go beyond the obvious!

13. Task Brainstorm the PESTLE with your partner. Work out how you are going to present this information. Remember it is not enough to identify the factor, you must say why it is where it is.

14. Task Write a short piece explaining how the firm should exploit/avoid some of the issues you have identified.