Even the imposition of a new tax or duty by the government could affect the entire revenue generating framework of your company.

However, it is something that needs to be drilled in, digested, or otherwise absorbed into every business mind because everything you think you know about running an organization is shifting in its place.

Moreover, the business environment we are currently in is, in itself, changing faster than ever before.

Not only does that make it crucial to thoroughly analyze the new environment, but also to deeply scrutinize the implications of its fast-paced changes.

Only then can you control and modify the ways in which your business reacts to them.

This, in simple words, is the essence of a business marketing strategy.

Whether you work in a small company, or a large multinational corporation, or run your own business, you stand nowhere without a firm understanding of business analysis techniques.

It is these techniques that will ultimately contribute to your key strategic decision-making processes.

With their results and findings, you can navigate the seas of our ever-changing, incredibly saturated, mind-bogglingly globalized business environment.

One such technique, which is an oldie but a goodie, is the PESTLE Analysis.

PESTLE is one of the five most frequently applied business analysis tools of business environmental analysis.

With the PESTLE analysis, you can identify and understand a myriad of external macro-environmental factors that could and will impact your business operations.

The PESTLE analysis is a time-tested concept of marketing principles.

The PESTLE analysis is also crucial if you plan on selling into a new country.

What does Pestle Analysis stand for Each letter of PESTLE represents a unique angle on the external environment.

It stood for P olitical, E conomic, S ocial and T echnological factors of the external environment.

Later, the letters L and E were added to represent the L egal and E nvironmental factors as well, thus completing the comprehensive analysis tool.

Pestle Analysis Image source: ictafra.wordpress.com No sort of strategic management decision can be made for launching a new product without a thorough PESTLE analysis.

Each of the outlined factors of the PESTLE analysis can have a profound effect on your business in terms of varying implications, including: Duration of impact whether the impact will be short term or long term.

Type of change whether the change will be positive or negative.

Rate of impact whether the impact will increase, decrease, or remain unchanged.

Importance whether the impact of the factor is critically important, important, or unimportant.

How is Pestle analysis used When performing market research, it is imperative that you understand the complete depth of each of the letters of PESTLE.

This insight will help you formulate the questions you should be asking during the PESTLE analysis.

Political Factor In Business