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2PROFESSOR , CIVIL ENGINEERING DEPARTMENT , MADHAV INSTITUTE OF TECHNOLOGY AND SCIENCE , GWALIOR
(MP) , INDIA
It helps you to spot business or personal actual order and words contained are common to certain
opportunities, and it gives advanced warning of parts of the world and streams of academic study.
significant threats.
It reveals the direction of change within one’s 4. Various Forms of PESTLE –
business environment. This helps shape what one
This is only a tool . Call it what one like – use whatever
is doing, so that one work with change, rather
factors one feel are appropriate. Variations include:
than against it.
It helps one avoid starting projects that are likely PEST analysis (STEP analysis) – Political, Economic,
to fail, for reasons beyond one’s control. Sociological, Technological .
It can help one break free of unconscious
assumptions when one enter a new country, PESTLE/ PESTEL analysis– Political, Economic,
region, or market; because it helps develop an Sociological, Technological, Legal, Environmental; PESTEL
objective view of this new environment. analysis .
The term PESTLE has been used regularly in the last 10+ PESTLIED analysis– Political, Economic, Social,
years and its true history is difficult to establish. Technological, Legal, International, Environmental,
Demographic .
The earliest know reference to tools and techniques for
‘Scanning the Business Environment’ appears to be by STEEPLE analysis – Social/Demographic, Technological,
Francis J. Aguilar (1967) who discusses ‘ETPS’ – a Economic, Environmental, Political, Legal, Ethical .
mnemonic for the four sectors of his taxonomy of the
environment: Economic, Technical, Political, and Social. SLEPT analysis – Social, Legal, Economic, Political,
Technological .
Shortly after its publication, Arnold Brown for the Institute
of Life Insurance (in the US) reorganized it as ‘STEP’ STEPE analysis – Social, Technical, Economic, Political,
(Strategic Trend Evaluation Process) as a way to organise and Ecological .
the results of his environmental scanning.
ETPS analysis – Economic, Technical, Political and Social .
Thereafter, this ‘macro external environment analysis’, or
Choose the acronym that most suits one’s organization and
‘environmental scanning for change’, was modified yet
objectives .
again to become a so-called STEPE analysis (the Social,
Technical, Economic, Political, and Ecological taxonomies).
In the 1980s, several other authors including Fahey, 5. External Risks Identification By PESTLE –
Narayanan, Morrison, Renfro, Boucher, Mecca and Porter
included variations of the taxonomy classifications in a These steps to be taken to analyze the business
variety of orders: PEST, PESTLE, STEEPLE etc. Why the environment, and the threats that it presents.
slightly negative connotations of PEST have proven to be
more popular than STEP is not known. There is no implied 1. Use PESTLE to brainstorm the changes happening
order or priority in any of the formats. around us . Decide the questions to be discussed
and tailor the questions to suit the specific needs
Quite who and when added what elements to the of one’s business.
mnemonic is a mystery, but what is known is that the 2. Brainstorm threats or issues that could be caused
by them.
© 2016, IRJET ISO 9001:2008 Certified Journal Page 386
International Research Journal of Engineering and Technology (IRJET) e-ISSN: 2395-0056
Volume: 03 Issue: 01 | Jan-2016 www.irjet.net p-ISSN: 2395-0072
Political: Legal: