PESTELI

INTRODUCTION

This is a checklist for analysing the environment of an organisation or its subunit. Initially the acronym PEST was devised, which stands for:

• Political factors – both big and small ‘p’ political forces and influences that may affect the performance of, or the options open to the organisation
• Economic influences – the nature of the competition faced by the organisation or its services, and financial resources available within the economy
• Sociological trends – demographic changes, trends in the way people live, work, and think
• Technological innovations – new approaches to doing new and old things, and tackling new and old problems; these do not necessarily involve technical equipment – they can be novel ways of thinking or of organising.

The same checklist can also be applied inside an organisation.

More recently the list has been expanded to PESTELI, and it now includes:

• Ecological factors – definition of the wider ecological system of which the organisation is a part and consideration of how the organisation interacts with it
• Legislative requirements – originally included under ‘political’, relevant legislation now requires a heading of its own
• Industry analysis – a review of the attractiveness of the industry of which the organisation forms a part.

 

FURTHER IN THIS DOCUMENT - SUBSCRIBERS ONLY

• Description of the PESTELI Model
• Use of the PESTELI Model
• Evidence of the PESTELI Model
• Commentary on the PESTELI Model

 

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