Swot and Pestle
SWOT & PESTLE Analysis
SWOT and Pestle analysis is a strategic analysis tool that feeds important information into the business strategy formulation process. SWOT stands for Strengths, Weaknesses, Opportunities and Threats. SWOT is used to determine the current position of an organization. The first two components pertain to internal factors and the latter two concern external issues. Pestle (or PEST) is an acronym for Political, Economic, Social, Technical, Legal and Environmental analysis. Pestle is a tool for assessing the external context of an organization (Bee, 1998).
Sequence
Pestle can be used alone or in combination with SWOT. If combined, Pestle analysis is done first to provide a context for SWOT analysis (Basu, 2004). Pestle analysis delineates the broad environmental context that affects the business and the changes that occur in this context. SWOT analysis then interprets these findings to determine organizations ' strengths and weaknesses, and opportunities and threats (Needham et al., 1999).
Significance of Pestle
Classical management theories failed to consider the environment vis-à-vis the organization and viewed organizations as closed, mechanical systems. Modern theory regards organizations as open systems. Organizations, like individuals, have needs. These needs are satisfied through contacts with the wider environment. The open-systems view stresses the importance of organizations ' interactions with customers, competitors, suppliers, labor unions, government agencies, and the contextual or general environment (Morgan, 2006). Pestle is a tool that helps scan the broader environmental context.
Significance of SWOT
SWOT analysis is a focusing device or framework in the process of formulating a business strategy. A strategy helps the organization build upon its achievements, plan for the future and monitor progress. An effective strategy should utilize unique strengths to distinguish the business from competitors. It should exploit
SWOT and Pestle analysis is a strategic analysis tool that feeds important information into the business strategy formulation process. SWOT stands for Strengths, Weaknesses, Opportunities and Threats. SWOT is used to determine the current position of an organization. The first two components pertain to internal factors and the latter two concern external issues. Pestle (or PEST) is an acronym for Political, Economic, Social, Technical, Legal and Environmental analysis. Pestle is a tool for assessing the external context of an organization (Bee, 1998).
Sequence
Pestle can be used alone or in combination with SWOT. If combined, Pestle analysis is done first to provide a context for SWOT analysis (Basu, 2004). Pestle analysis delineates the broad environmental context that affects the business and the changes that occur in this context. SWOT analysis then interprets these findings to determine organizations ' strengths and weaknesses, and opportunities and threats (Needham et al., 1999).
Significance of Pestle
Classical management theories failed to consider the environment vis-à-vis the organization and viewed organizations as closed, mechanical systems. Modern theory regards organizations as open systems. Organizations, like individuals, have needs. These needs are satisfied through contacts with the wider environment. The open-systems view stresses the importance of organizations ' interactions with customers, competitors, suppliers, labor unions, government agencies, and the contextual or general environment (Morgan, 2006). Pestle is a tool that helps scan the broader environmental context.
Significance of SWOT
SWOT analysis is a focusing device or framework in the process of formulating a business strategy. A strategy helps the organization build upon its achievements, plan for the future and monitor progress. An effective strategy should utilize unique strengths to distinguish the business from competitors. It should exploit