How to Create Your Business Plan with the PESTLE Test in MindBy Sue Brooks on Thu, 11/10/2011 - 09:37
When you’re in business for yourself you really do need to take ‘time out’ to assess your position and consider the elements both internally and externally that could impact upon your company’s future growth and development.
Externally, we tend to look at the economic growth/decline in the UK but very rarely do we take into consideration the global picture and implications it could have on our business.
With the Greek and Italian economy very much in the national headlines at the moment it may be time for you to assess the situation with regards to any overseas suppliers, customers etc that you rely upon so you can start preparing a contingency plan.
The weather can also impact on business and we have seen that overseas with major manufacturers affected by earthquakes and extensive flooding. This in turn has slowed down UK sales companies that are waiting for products and spare parts etc.
It is certainly worth undertaking a PESTLE ANALYSIS on your business and I hope the guide below helps you to achieve that.
The purpose of PESTLE is to find out the current status and position of an organisation in relation to the external environment. For example –
• A change of Government
• A change in the funding
• New legislation eg Disability, Health & Safety
• A change in the market for particular products
• Economic recession in a country that provides materials
• A competitor merges with another institution or changes it course or portfolio of products
• A major supplier goes out of business
It covers Political, Economic, Social, Technological, Legal and Environmental factors. It enables you to prepare strategically for any changes that need to be made in the organisation or simply to have the awareness of the external market to give you the competitive edge over other firms in your industry.
The factors can be at ‘macro’ e.g. world/EU/UK only) or ‘micro’ e.g. institutional or individual level.
For each of the factors below you will need to consider :-
• Which of the below are of most importance now?
• Which are likely to be most important in a few years
• What are the factors influencing any changes?
LIKELY TO INCLUDE
Worldwide, European and Government directives
Funding, council policies, national and Local organisations
Requirements, institutional policy.
Tax policies, Employment laws, Trade restrictions, Tariffs
|Social and Cultural Factors||
Social attitudes to education, particularly in relation to government directives and employment opportunities as well as career opportunities.
Also general lifestyle changes, health consciousness, population growth rate, demographics and the impact of different mixes of cultures.
|Technology imperatives, changes and innovations||
New technologies continually being developed.
Changes to barriers to entry in given markets.
Major current and emerging technologies of relevance for teaching, researching and administration
|Legal changes that could impact your business||
Current and impending legislation affecting the business which may impact on employment
Access to materials, resources, imports/exports, taxation etc.
European and national proposed and passed legislation
What is happening with respect to ecological and environmental aspects.
Local, national and international environmental impacts, and the outcomes of political and social factors.
So why not let Creation Media help you take the PESTLE test? Pop in for a a coffee and a chat with our regional South West manager Sue Brooks and see how she can help you come up with a recession proof plan for your business.