As a business leader one of your most important jobs is to keep your eyes cast on the wider industry. From a strategy point of view the perspective needs to be wide and encompass all the different factors that can affect the performance of your business. Its not just about the products you sell or your immediate competition.
That’s why a framework such as a PESTLE analysis will help you broaden that view. The PESTLE analysis covers the wider factors such as Political (these could be local government or central government policies), Economic (local economy vs. wider economy), Social, Technological, Legal and Environmental.
Lets take the political view. Lets say in your local area there is a change in government from Conservative to Labour. What will this mean in terms of policies? Does Labour support a reduction in business rates while the Tories don’t?
From a social perspective are you concerned about the rise in discontented millennial’s? Or is this an opportunity?
Local economics play a huge part in the success of many businesses. For instance Network Rail plan to open a new station. The building community decide to build new blocks of houses nearby to take advantage of the increased prices taken for properties close to transport. A set of shops then open up to take advantage of local needs. As you can see before long you have a micro economy.
Please feel free to use our template and feedback to us any suggestions for changes. This template can also be distributed among your community.
PESTLE Template download
Feel free to complete our free Business model assessment if you want an insight into how you’re managing your business strategy