Any company exists in close contact with the external environment. Therefore, to have the possibility of existence and development, the enterprise must constantly be in the process of mutual exchange with it.
Naturally, the external environment is numerous, diverse and heterogeneous in composition. Almost all of its components affect the company, the difference is only in the degree, nature and periodicity of their influence. Therefore, all external factors require careful and regular study. For these purposes, there is a PESTLE analysis that is an extended version of a classic PEST analysis.
PEST-analysis is a (macroeconomic) model of environmental assessment which calculates the factor of successful influence of the company. Most often it is used to understand the potential market to enter it with a new product. To implement the PEST-analysis, it is necessary to have a list of key external factors that have a significant impact on the organization’s business.
The PESTEL chart is designed to help you in this task. The factors are represented in a form of a chart. The following advantages make the slide popular and widely-used:
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