Page 17 - Microsoft Word - 00 P1 IW Prelims.docx

External analysis

PESTEL

These are uncontrollable, external (macro-environmental) factors which can impact
on an organisations future growth.

The influences can come from

 Political factors – e.g. changes in government, tax

 Economic factors – e.g. changes in interest rates, inflation, recessions

 Social factors – e.g. changes in taste, fashion, demography

 Technological factors – e.g. rate of development, innovation

 Ecological factors – e.g. pollution, social attitudes, sustainability

 Legal factors – e.g. professional regulations, employment law, consumer
protection

Illustrations and further practice

Now review illustration 1 and try TYU question 1.

11