PESTLE Analysis with Mind Mapping ToolsTry MindMaster Now
PESTLE analysis is a tool to study the macro conditions of an organization/business. It is mainly used by the marketing/sales professionals and business managers to determine various aspects that have different impacts on a business in concern. Let us see the full-form of PESTLE to understand it easily.
- P - Political
- E - Economical
- S - Social
- T - Technological
- L - Legal
- E - Environmental
Why People Do PESTLE Analysis
It's a well-known marketing tool where the marketers across the world use it for business analysis and enhancement. PESTLE Analysis is used to examine the external matters which directly impact any business and its future. Before planning to introduce a new product in the market, a thorough PESTLE Analysis helps them understand if the product is going to be a success or failure and what changes can be made to run that product in the market successfully.
Before, there were only traditional businesses worldwide, but the time has been changed, and the world has shifted to a digital environment. Most of the sales in the current days are happening digitally, as PESTLE Analysis is becoming more and more popular.
You must know about the key factors that determine the outcome of a successful PESTLE Analysis. Please read through the following part to know them.
6 Essential Factors of Pestle Analysis
Here are all six factors of PESTLE Analysis in brief.
- Exchange Rate
- Inflation Rate
- Unemployment Rate
- The Consumer Behavior/Likings
- Age Profile
- Population's Growth Rate
- Religious Belief
- Social Attitudes
Mainly the government and its policies play a very important role in a company's progress. Many countries, such as Sweden, have a lot of benefits provided to the nation's organizations. Various policies have been implemented in the industries for future growth. The loan facilities by the national banks, relaxation in the taxation processes, crowdfunding, etc. help the industry grow and flourish. The political environment of a country has a great impact on any company's business growth, and a business cannot enhance without the support of governmental benefits. So, this is the "P" of PESTLE Analysis.
The economic conditions of a country suggest what business can be established there. Even there can be different economic infrastructures in one country between different states/regions. The economy of a region depends on the following factors:
So, as you can see that each of these factors are inter-related or linked to each other. To know more about one country's economic situations in detail, you need to know about the country's historical, geographical, demographic, and industrial existence. So, all these factors together determine the economic health of a nation.
The PESTLE Analysis is also helpful in calculating the sociocultural values of an organization and determines what sort of products are in demand in terms of the current industry standards. Factors that impact the socio-cultural environment of an organization are mentioned below.
All these are important factors that determine a company's socio-cultural values and possibilities of success.
When the company launches a product, the marketers also must check whether the product will have a match with the current technology, or will lag behind the generation's needs. The product has to fulfill the current industry standards and meet all the current technological requirements. A PESTLE Analysis tool will accurately assess all these in detail and show the results by seeing which issues can be found and need to be improved.
Technological changes can have a profound impact on companies. To sustain growth in the market, a company needs to keep upgrading its technology as well. A thorough knowledge about current technology and the market trend is highly required for the growth of any business.
It is the most fundamental aspect that determines the success and establishment of a business or brand. The government body tactfully controls the legal policies such as trade license, business registration, loan eligibility, foreign trade license, investment and funding policies, business share, and expansion policies. All these factors are directly related to any organization's growth and prosperity. The more a government supports them legally, the more they flourish. Through a detailed PESTLE Analysis, all these factors can easily be measured and taken care of.
The sustainability of a business and the success of a company also depends upon environmental situations. For example, the value of any product/service is decided due to the scarcity of raw materials, pollution targets, carbon dismission, etc. Furthermore, people are gradually aware of the potential impacts of climate change and know more about how it will affect the environment. So, it has influenced how companies operate and the products they offer.
Doing Pestle Analysis with Mind Mapping
Mind maps are graphical and diagrammatic representations of any sequential process or ideas. When PESTLE Analysis of a product is done before launching any product to market, if a mind mapping is also done, then it will help the marketers understand the PESTLE Analysis process in a much easier way.
Steps to follow while creating a mind map
- Understand all the factors of a PESTLE Analysis in detail.
- Complete the PESTLE Analysis process.
- Represent the results using the free Mind Mapping tool.
- Use flowcharts, images, clip arts, symbols, and more to create the use-cases.
A successful product launch is essential for any company's growth. Mind mapping and PESTLE Analysis are two different technologies that are based on similar thoughts. Both are interrelated, connected to each other. And to get the best results through mind mapping, one must understand the concept of a PESTLE Analysis.
This is the era of technology, the timeframe of enhancement and growth. Being a marketer, one must cope with the trending technical improvements and take the business to the next level. Technologies will change, but the concept of enhancement will be the same - usage of marketing tools has been making things easier for the marketers, just they need to choose the right one, use it, take the advantages of all its features, and do wonders!