Lesson 3: External Situation

Lesson 3: External Situation

A environmental analysis helps a business understand external forces that can affect it. The environment, or external forces, are often factors that a business cannot control, yet it is important to be aware of environmental concerns when preparing a marketing plan or introducing a new product to the market.

The most common method for preparing a marketing environmental analysis is to conduct a PESTLE analysis, which stands for Political, Economic, Social, Technological, Legal and Environmental, areas affecting a business.

PESTLE analysis is a useful tool for any business. Easy to use and understand, PESTLE analysis provides a methodology for critically examining the external factors that may affect the business itself, its operations and/or its strategy.

The most important aspect to remember is that PESTLE analysis is nothing more than a framework for determining the external factors that may affect a business. PESTLE analysis itself is not intended as a rigid structure that requires lists upon lists in tightly defined categories. The greatest strength of PESTLE analysis is its ability to facilitate brainstorming about factors that are outside the company’s control but which affect the business nevertheless.

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