PESTLE Analysis

This is a framework which can be used to gather and analyse key external themes and factors that can affect and influence the operational success of an organisation and be used to help formulate strategic decisions and planning.

The analysis can be initiated using a matrix, with block headings being the theme; external factors to reflect on; how each factor might affect and influence the organisation; and the relative importance of each factor to the organisation, which can often be rated, Low / Medium / High, or a scale of 1 to 5, or similar.

External factors, which can forma question for further investigation, to reflect on How each factor might affect and influence the organisation The relative importance of each factor to the organisation
Political





Economic





Social-cultural





Technological





Legal





Environmental






To begin with it is important to identify the aim and objectives of the analysis and also the scope and boundaries in which it will operate. Suitable questions are then posed, against which the analysis will then take place. In general terms these might include:
• What are the factors within each of the themes that can impact on our business operations?
• How concerned are we about each of the identified factors?
• How might the factors impact on routine activities?

Within each specific theme, illustrative questions might include, with some specific to golf courses and sports grounds, for example:

Political
• How might current and near future politics influence legislation or regulations over the coming year and years?
• What pressure are activist groups and/or organisations having on the political situation, especially the stability of it?
• What political initiatives could help drive our organisation forward, especially if they are not required regulatory ones?
• Government policies might allow for, or require, large areas of land to be opened up for public access.
• Environmental protection regulations might become more prominent due to the Government’s further engagement with sustainability and protecting the natural environment.
• There might be changes to taxation policies which may influence potential surplus and profits.
• Changes to local Government taxation may increase charges made to some golf courses and sports grounds.

Economic
• What impact might different fluctuations in the economy have on the business?
• Will consumer spending patterns change from existing levels? Will they increase or decrease for a particular golf course or sport?
• What external conditions or pressures might be influencing disposable income?
• Will local businesses be able to support, through employment, the current catchment area of users?
• Will the location of the facility still be as relevant to users in the next 5 or 10 years, or will users relocate to other facilities?
• Is it a good time to invest in resources, considering level of interest rates?
• Are resource costs changing and to what extent?
• Will there be additional costs for the use of natural resources, for example, water?
• Will there be a need to pay increased staff salaries to attract employees from a potentially dwindling labour pool?
• Does the facility rely on significant numbers of foreign visitors and how might changes to the currency exchange rate affect them in using the facility?

Social-cultural (or Social or Sociological)
• What social and cultural factors might impact on the business, with changing social attitudes in particular influencing the perception of how environmentally beneficial and popular a sports facility is - both nationally and locally?
• Is there a change in consumer habits?
• How might demographics affect the potential workforce recruitment?
• How might local demographics affect the viability and popularity of the facility, in particular will a changing age group make the facility more or less likely to be used?
• Are education and training opportunities adequate?
• Changing societal attitudes may require a change in maintenance practices and materials used and consumed on sports surfaces.
• Can changes to business activities better attract potential employees and users? For example, will being more environmentally sustainable maintain or improve consumer confidence in the facility?

Technological
• How is technology impacting on working practices?
• Will personal work performance monitoring devices improve planning and management techniques, or will this be seen as overly restrictive in monitoring privacy concerns for an employee?
• Can drone technology be used to monitor turf surfaces, user progress around golf courses, providing safety controls for lone workers by remote observation, or to apply materials (for example sprays) to turf surfaces?
• Are there new technologies which need to be considered? For example, will autonomous machines be more prevalent in the near future and what impact might this have on staffing and costs?
• What new technology can be readily implemented to build a stronger future for the organisation?
• Are we keeping up with technological change?
• Will virtual technology replace some of the need for physical engagement by some users?

Legal
This links very closely with political theme.
• Are there changes coming to legal obligations?
• Are there new standards which will need to be complied with?
• Are there new health and safety, or similar, regulations forecast?
• Is awareness within the organisation adequate for implementation of the range of laws?
• Is data protection adequately understood?
• Are privacy laws in need of updating?
• What changes are being made to employment laws, and how might these affect the financial status of the facility?
• What impact will any change to environmental regulations have on the facility?
• Are land use policies and regulations changing, in particular will areas of golf courses be redesignated for building or open access to the public?

Environmental
• Can environmental practices be improved and how?
• What environmental standards can be improved?
• Will there be a greater need to improve the biodiversity and environmental sustainability of a facility?
• How adaptable and responsive can the organisation be to changing environmental situations?
• What impact might climate change / global heating have on the maintenance and management of a facility?
• Will the availability of water resources be more restricted than at the present?
• Can the use of carbon footprints improve the organisation's sustainability?
• Is the carrying capacity, and implications of this, adequately determined and evaluated for the sporting surface?