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For top management, the PESTEL analysis allows to study the positive and negative influences that macro factors can have on our organization and our projects..

Introduction

This very “High Level” tool is used when creating the deployment plan to define our strategy. The analysis will indicate the priorities and points of attention.

Initially composed only of 4 factors, with time has been added the ecological and legal constraints.

The method

The method is rather simple. For the subject of study we will define the factors that would be able to influence it. We find :

  • Politics :  political stability, fiscal policy, social protection, foreign trade…
  • Economic : economic cycle, evolution of GNP, interest rate, monetary policy, inflation, unemployment, disposable income, growth, purchasing power…
  • Sociological : demographics, income distribution, social mobility, consumerism, education, leisure and work attitude…
  • Technological : public R & D expenditures, private investment in technology, new patents or discoveries, technology transfer rate, obsolescence rate…
  • Ecological : environmental protection laws, waste reprocessing, energy consumption…
  • Legislation : Norm, labor law, health legislation, intellectual property…

 

Taking these parameters into account is necessary to prevent certain barriers. For example, if we want to be able to increase staff flexibility, it will be necessary to check beforehand the legal aspects of employee contracts. In which case, this project will have to be abandoned for another.

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