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The influencing factors of the existence of your organization
Your organization is not a closed system. It interacts with its environment and is influenced by it. The PESTEL analysis helps you precisely understand how the external environment can positively or negatively affect your business through six different viewpoints: Political, Economic, Social, Technological, Environmental and Legal. Having a macro-level, i.e. as broad as possible, picture of the context and environment will help you build a fundamental holistic dimension useful in informing any strategic decision.
Looking at your organization, your industry, and your market from multiple viewpoints allows you to move within them consciously
How to use the PESTEL Analysis
1. First Step
Identify the research scope. It should concern the current scenarios and those that may occur in the future and relate to the industry and geographic areas in which the company operates.
2. Second Step
Determine how the information will be gathered and from whom. Identify more than one person to collect the data; it is fundamental to bring in different elements and points of view.
3. Third Step
Identify proper sources of information. It is possible that some areas of PESTEL are more relevant to your industry or business than others; however, examining information on all areas will certainly provide you with a more complete overview of the external environment.
4. Fourth Step
Gather the information and analyze the results dividing them into the 6 different macro areas: Political, Economic, Social, Technological, Environmental and Legal.
5. Fifth step
Mark each item according to its importance related to the area of research you identified at the beginning. This will be useful in identifying trends for further investigation and monitoring
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