Shared Activity: Using a PESTLE Analysis
No product or brand exists in a vacuum. An organisation must have a full understanding of not only its internal environment, but also of the external environment surrounding its products and brands. For the purposes of this unit, the external environment will be divided into the distant and near environments (also known as macro- and microenvironment or distal and proximal). The distant and near environments are associated with two analysis models respectively: the PESTL (political, economic, social, technological and legal) or one of its many variations and the Porter's 5 Forces model. It is essential to analyse both the distant and near environments in order to make informed decisions about the market for products and brands. An external analysis may also be used for control and evaluation purposes throughout a product's life cycle.
In the field of marketing, the distant environment is perceived as being composed of broad forces. These forces are often grouped together for analysis under some variation of PESTL. Some models also include an additional E for environmental which, in this case, refers to environmental issues such as pollution or ‘green' strategies rather than an organisation's internal and external environments. Growing environmental concerns across the globe are such that it is highly recommended that this factor is included. In addition to providing context for a marketing campaign, considering environmental factors may provide a competitive advantage by appealing to customers' growing desire to associate themselves with environmentally-aware organisations and products. Other versions with similar areas of analysis include SLEPT, STEEPLE, EPISTEL and so forth. Each of the PESTLE forces is briefly described in this unit's Unit Introduction, accompanied by some questions that organisations should attempt to answer through analysis. These forces are also addressed in more depth in the Readings.
For this Shared Activity, you will conduct a PESTLE analysis on your featured organisation and brand, which will become the focus of your Final Project.
Imagine that the organisation you chose is in the decision phase of determining where to market new products and has selected one international market to research.
To prepare for this Shared Activity:
- Review Evans and Richardson (2007). Consider how the featured business used a PESTLE tool to analyse its environment.
- Consider the environmental responses listed such as ignorance, delay and retrenchment for your discussion on amelioration strategies for environmental issues.
- Research similar PESTLE tools in the Readings and online. Select a template you think is a good fit with your Final Project organisation and proposed fictional product or create a PESTLE tool of your own.
To complete this Shared Activity:
- Post the completed PESTLE tool you found through your research or created on your own.
- Complete the PESTLE analysis on the external environment of your chosen organisation. Critically analyse your findings on the external environment of the organisation. Describe insights you gleaned from the analysis. Did you notice any issues? Describe the specific area of the PESTLE analysis in which they were found and what might be done to ameliorate them. What potential environmental issues not addressed in this PESTLE analysis might need to be researched?
- Based on your analysis, determine the likelihood of success and the impact of marketing the proposed product in the selected area.
- Be sure to include specific examples and support your postings with evidence from the Readings, other current literature from the UoRL Library and other sources. Consult the Harvard Referencing Style Guide for proper citation and referencing information.
Respond to your colleagues' analyses by expanding on, questioning, suggesting alternative viewpoints or offering further support for their ideas.
Be sure to include specific examples and support your postings with evidence from the Readings, other current literature from the UoRL Library and other sources. Consult the Harvard Referencing Style Guide for proper citation and referencing information.
Attachment:- Attachments.rar