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Pestle Analysis - Environmental Organizational Scanning

PESTLE Analysis - Environmental Organizational Scanning

Introduction

PESTLE Analysis is an analysis of the external macro environment (big picture) in which a business operates. These are factors which are often beyond the control or influence of a business, and that's why it's important to be aware of them to deal with in the Strategy of the organization.
First Group- the largest surface transportation company in the UK- needs to review both internal and external factors which could have an influence on its business for understanding market growth or decline, in parallel to the position, potential and direction for transportation business.

PESTLE Analysis

PESTLE, an acronym for) Political, Economic, Social, Technological, Legal and Environmental factors), is a business measurement tool often used within a strategic SWOT analysis (Strengths, Weaknesses, Opportunities and Threats analysis), which are used to assess the market for a business or organizational unit strategic plan.
Strategy Survival Guide -UK Prime Minister's Strategy Unit - web site state: "It may be possible to identify a number of structural drivers of change, which are forces likely to affect the structure of an industry, sector or market. It will be the combined effect of some of these separate factors that will be important, rather than the factors separately" Which mean that PESTLE factors linked to each other.

Links between political & legal factors

Political

A good example of factors influences First Group. Political factors –The UK government wants transport businesses to reduce their effects on the environment by reducing CO2 emissions and is encouraging people to use public transport rather than cars. First provides safe and reliable services that encourage more people to use its buses and trains. This also helps the environment as more people choose to use public transport rather than theirs cars.

Legal

Legal factors that affect business often link to...