Describe one advantage and disadvantage of the PESTEL analysis for strategic planning.
Primary Response: Within the Discussion Board area, write 400–500 words that respond to the following questions with your thoughts, ideas, and comments. Be substantive and clear, and use examples to reinforce your ideas.
For this Discussion Board, please complete the following:
An external analysis of a company is another indicator for making strategic decisions. External factors are the general environment of an industry that strategic leaders most likely will not be able to influence. There are six external factors for a PESTEL analysis that influence all firms in a given industry. The PESTEL model groups these segments as: political, economic, sociocultural, technological, ecological and legal.
Review the following article:
Scanning the Environment: PESTEL Analysis https://www.business-to-you.com/scanning-the-environment-pestel-analysis/
Explore the six PESTEL external factors: political, economic, sociocultural, technological, ecological, and legal.
Choose one industry (automotive, hospitality, manufacturing, high tech, etc.) and discuss the following with your peers:
• Examine one of the six PESTEL factors in relation to your chosen industry. In your opinion, why do you believe this PESTEL factor is the most important to your chosen industry?
• Describe one advantage and disadvantage of the PESTEL analysis for strategic planning.
• If you were a manager in a global organization, how would you use the technological factor of innovation to gain a competitive advantage?
Principles of Management: Chapters 8 (pp. 252–256) & 13 (pp. 419–441)
OER Commons: Strategic Management (2020) Read Chapters 3 (pp. 53–67), 7 (pp. 164–168), 8 (pp. 211–220), and 11 (pp. 349–368)
What is PESTEL Analysis? Watch the video to learn more about a PESTEL analysis
de Bruin, L. (2016, September 18). Scanning the environment: PESTEL analysis. Business-to-you. https://www.business-to-you.com/scanning-the-environment-pestel-analysis/
Discussion Board Rubric
Expectation Points Possible
Application of Learning Material Content: Post demonstrates understanding of Learning Material content. 20
Application of Course Knowledge: Post contributes unique perspectives or insights gleaned from text/learning resources, or specified by assignment. 20
DB Responses: Responds substantively to two posts. Responses encourage interaction in the Discussion Board and classroom community. 20
Organization: Post presents information logically and is clearly relevant to discussion topic. 8
Professional Language: Posts contain accurate grammar, spelling, and/or punctuation with few or no errors. Any resources should be cited in APA format or style specified in the assignment. 7
Total Points 75