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You can read the first blog about a PESTLE here……

Advantages of a PESTLE

It offers headings for you to think about almost asking you questions for consideration.

It helps you forsee potential threats and potential opportunities to the organisation and plan for them.

Its a good technique to prepare for scenario planning.

Its not too time consuming and can be done singularly although a team is better.

It provides a format and template for you to pull facts together neatly.

It helps you sift out the insignificant so they can be put aside and focus on important factors.

It is a horizon / environment scanning tool / a strategic planning tool and an analytical technique making it a perfect model choice for study and assignments.

Limitations of a PESTLE

It only focusses on external factors and doesnt consider internal strengths and weakness of an organisation that could deal or not deal with the external factors.

External factors can be fast changing so the PESTLE needs to be reviewed regularly.

It can cause the user to focus too heavily on the headings which may produce factors that are insignificant.

In some respects there is a little crystal ball thinking and careful consideration needs to be given to the ‘may happen’ rather than the ‘unlikely to happen’

Along with the above the PESTLE needs skill in risk rating to make sure the facts are relevant.

Learners: If you are undertaking an ILM or CMI NVQ in Leadership and management this post will assist your learning for the following unit / criteria:
500 ML45 1.1 Evaluate a range of strategic planning models
500 ML45 1.2 Evaluate the advantages and limitations of a range of analytical techniques
500 ML45 2.1, 2.2 & 2.3 Evaluate political, economic, social (include market factors), technological, legal and ethical factors affecting the development of strategic plans. Then evaluate the application of your PESTLE as a tool for strategy development.
700 ML57 1.1 Evaluate a range of strategic planning theories and models.
703 ML56 1.2 Evaluate the use of environmental scanning techniques and scenario planning models.
703 ML56 1.6 Analyse the usefulness of strategic planning tools and theories
703 ML56 1.7 Assess the relationship between strategy analysis and strategic choice
703ML56 2.1 Evaluate the impact of political, economic, social, technological, legal, ethical and environmental factors on an organization and its markets
703ML56 2.5 Model a range of scenarios relating to an organisation’s intended market position