How To Write A PESTLE Analysis Essay

A majority of individuals who have successfully undertaken their business courses can confirm the importance of conducting a feasibility study, especially when it comes to establishing a new business. In this case, the main focus is on the external factors that may affect the process of establishing or expanding a business. It is notable that extensive investment is involved when it comes to expanding a business or establishing a new one. Therefore, there is the need to outline some projections on what to expect upon venturing into such an endeavor. This is where the PESTLE analysis comes in. Essentially, PESTLE analysis accounts for 6 major external factors that can influence a business’ success or failure. They comprise Political, Economic, Social, Technological, Legal, and Environmental factors. Here is a guide on how you can write a PESTLE analysis paper:

The Introduction

It is important to note that the intention of conducting a PESTLE analysis is to examine the factors that are likely to affect a business in a new area of establishment. In essence, the model applies largely for individuals whose intention is to expand their entrepreneurial ventures. In this case, you need to ensure that the reader is familiar with what you intend to do. This is where the background information is rendered necessary. Yours is to inform the reader on what your purpose is and the intentions towards expanding or establishing your business. Make sure that the reader is familiar with your plan by providing all the necessary details in the introduction.

The Political Factors

The business sector is largely affected by the political developments that take place in different occasions. For instance, imposition of new tax on a new business establishment may attract some political unrest, which can directly influence the process of business expansion or establishment. Essentially, businesses can only prevail in circumstances whereby there is political stability. Therefore, it is important to consider all the underlying factors as far as politics in a specific location are concerned. Make sure you research and account for all political factors that can directly or indirectly affect business.

Economic Factors

Economic factors directly impact business in various ways. In this case, the main consideration is on specific economic factors. For instance, if a country is experiencing a high inflation, the likelihood is that some challenges will be experienced while establishing a business. Similarly, if a country is considered to be experiencing a high rate of unemployment, businesses may fail to prevail. Therefore, it is important to consider such economic factors.

Social

This factor resonates with people’s way of life, including culture. It is important to examine how individuals respond to certain products based on their beliefs and convictions. Therefore, your PESTLE analysis paper should account for all social factors, including the prevailing trends.

Technological Factors

This section discusses the factors associated with technology, as well as how they may impact new business establishments. The focus should be on processing and production of goods and services. You must examine whether or not the current technological trends can suit your business, as well as what should be done for better achievements.

Legal Factors

It should be noted that any changes in law or legal provisions in a certain business location can directly affect the establishment of a business. In some other cases, the legal provisions may be favorable for the business in question. Therefore, your paper should account for the underlying legal factors that may affect the successful establishment of a business.

Environmental Factors

Nature is part of what influences businesses. Hence, it is important to account for environmental factors when it comes to a PESTLE analysis. Identify all environmental factors that can influence your business, as well as how they can be handled to advance your venture.

Conclusion

Now that you have accounted for all the 6 major factors of a new business environment, the last section of your paper should give the verdict. Here, you should confirm whether or not the new business setting is viable. Communicate your verdict in a logical manner.