A Pestel analysis is a process that integrates the knowledge, data and knowledge base of a company's management to determine relevant and necessary solutions to pest management problems. PEST analysis refers to a model of macro-managerial factors used as part of the organizational screening and management tool used in strategic management. It is used for the purpose of establishing priorities and alternatives in the environment and it is aimed at assisting organizations in achieving the desired objectives by providing comprehensive and accurate solution. The primary objective of a PEST evaluation is to identify and carry out solutions to pest management problems. The processes and principles of PEST are designed to provide a flexible and comprehensive framework for the management of various environmental issues, ranging from chemical management to ecological risks to food safety to occupational health and safety.
PESTEL analysis is also known by several other names, including: PEST database, PEST study, economics of insect control, insect pest risks and other aspects of insect pest management, the economic approach and others. It is usually performed on a case-by-case basis according to the availability of resources. However, some general assumptions about the PESTEL approach are suggested here for discussion purposes. The identification of problem factors is the first step in any PESTEL analysis. In this respect, two broad categories of factors are distinguished: economic and social factors.
Economic factors refer to the extent of technological innovation based on new knowledge and skills. This includes innovations in methods and techniques for managing insect pests that have broad applicability, including genetic engineering, antibiotic resistance, pesticide use, food safety, water treatment and quality, energy efficiency, and transport management. Technological factors refer to novel technologies associated with the management of insect pests. Examples include genetic engineering, antibiotic resistance, pesticides, food safety, water treatment and quality, energy efficiency, and transport management. Technological innovation and related factors also affect the overall productivity of a society and its economy.
While the previous PESTEL analysis only considered technical factors, it has been replaced by the current PESTEL-plus (the combination of technical and economic factors). Some of the factors considered in the PESTEL-plus approach are: company history, industry structure, marketing mix, geographic area, and policy mix. One can find PESTEL-plus results based on the analysis of more than one hundred PESTEL cases in areas such as coca-cola, cottonseed, citrus fruit, egg white, listeria, melaleuca, meadow grass, marine aquarium plants, sheep, tobacco, wheat, and tropical crops. Some companies have applied PESTEL-plus to evaluate the environmental, social, economic, and other factors that affect their business.
The third category of PESTEL-plus risk factor is the combination of external factors. External factors include financial, legal, and political risks. This PESTEL-plus vulnerability assessment is used to determine whether the target market is affected by the competitors' PESTEL activities and the company's vulnerability. Swot analysis of the external factors and the PESTEL results show that financial, legal, and political risks are generally not major causes of weakness.
The combination of the PESTEL along with other factors allows companies to determine their vulnerability and the extent of their exposure. They are able to forecast their future sales, prices, and margins. They also can assess where they need to improve in order to protect their brands or their revenue. In the past, many companies have chosen to ignore these issues and remain oblivious to them. But the combination of PESTEL, economic, and external factors make this important issue a priority for many companies. Check out this post that has expounded on the topic: https://en.wikipedia.org/wiki/PEST_analysis.