PESTEL Analysis
This is an updated form of pest analysis sometimes known as STEP.
PESTEL stands for Political, Economic, Social, Technical, Environment
and Legislative.
It is a strategic planning technique that provides a useful framework for
analysing the environmental pressures on a team or an organisation.
Political
- regulators
- politicians
Economic
- world trends
- UK trends
- industry trends
Legislative
- European
legislation
- UK directives
Social
- cultural change
- expectations
- demographics
- family change
Technological
TEAM
or
ORGANISATION
Environmental
- cost implications
- public opinion
- sites and locations
Application
A PESTEL Analysis can be particularly useful for groups who have become too
inward-looking. They may be in danger of forgetting the power and effect of
external pressures for change because they are focused on internal pressures.
You can use this technique for a large or a small group activity.
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How does this work?
Use a flip chart so that everyone can visualise the data being generated.
1. Ask the group to suggest Political pressures for change in their
organisation. Write their suggestions on a flip chart.
2. Repeat this for Economic, Social, Technological, Environmental and
Legislative pressures.
3. Ask the group to consider the implications of each of these sets of
pressures for their work.
References
Rogers, J (1999)
Facilitating Groups
Management Futures Ltd.
London.
Havergal, M & Edmonstone, J (1999) The Facilitator’s Toolkit Gower Publishing
Ltd. UK.
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